37946 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

POSTAL SERVICE

39 CFR Part 111

Domestic Mail Manual Changes To

Implement the Rate, Fee, and

Classification Changes in Docket No.

R97–1

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This final rule sets forth the

Domestic Mail Manual (DMM)

standards adopted by the Postal Service

to implement the rate, fee, and

classification changes for all classes of

mail included in the Decision of the

Governors of the Postal Service in Postal

Rate Commission Docket No. R97–1.

EFFECTIVE DATE: This final rule is

effective at 12:01 a.m. on January 10,

1999.

FOR FURTHER INFORMATION CONTACT:

Lynn M. Martin, 202–268–6351 (all

topics); Paul Lettman, 202–268–6261

(Parcel Post); Thomas DeVaughan, 202–

268–4491 (Business Reply Mail).

SUPPLEMENTARY INFORMATION: On July

10, 1997, the Postal Service, acting

under sections 3622 and 3623 of the

Postal Reorganization Act (39 U.S.C.

3622, 3623), filed a request for a

recommended decision by the Postal

Rate Commission (PRC) on proposed

rate, fee, and classification changes. The

PRC designated this filing as Docket No.

R97–1. A notice of filing, with a

description of the Postal Service’s

proposals, was published by the PRC on

July 23, 1997, in the Federal Register

(62 FR 39660).

On March 16, 1998, the Postal Service

published for public comment in the

Federal Register a proposed rule (63 FR

12864) that provided information on the

implementation rules for the rate, fee,

and classification changes that the

Postal Service proposed to adopt if its

requested changes in Docket No. R97–1

were recommended by the PRC and

approved by the Governors of the Postal

Service.

Pursuant to 39 U.S.C. 3624, on May

11, 1998, the PRC issued its

Recommended Decision on the Postal

Service’s Request to the Governors of

the Postal Service. The PRC

recommendations made revisions to

some of the mail classification structure,

rates, and fees requested by the Postal

Service. Based on an extensive analysis

of the PRC’s Recommended Decision

and deliberation as to its consequences

to the Postal Service and its customers,

and pursuant to 39 U.S.C. 3625, the

Governors acted on the PRC’s

recommendations on June 29, 1998. The

Governors determined to approve the

PRC’s Recommended Decision except

for the recommended classifications and

fees for Prepaid Reply Mail and the

recommended ‘‘shell classification’’ for

Courtesy Envelope Mail. The Governors

expressed concern about the necessity

for these separate classifications. The

Governors have encouraged

management to consider whether

refinements to the approved Qualified

Business Reply Mail (QBRM)

classifications and fees can be

developed which improve upon the

accounting options and fees approved

for QBRM. The Postal Service plans to

further study the issue of consumer

automation discounts.

The Governors allowed under protest,

and returned to the Postal Rate

Commission for reconsideration, the

rate schedules for Within County

Periodicals, Library Rate Mail, and DDU

Parcel Post.

The Board of Governors set an

implementation date of January 10,

1999, for the approved rate, fee, and

classification changes to take effect,

except for delivery confirmation and the

electronic form of return receipt

(signature confirmation) service for

delivery confirmation customers. The

Board of Governors determined that

implementation of the new delivery

confirmation service approved in the

Governors’ Decision, as well as the

classification change allowing delivery

confirmation as a sole prerequisite for

return receipt service, should take place

after the effective date established for

the other changes approved and allowed

by the Governors, but not later than June

1, 1999. Later implementation will

provide time for deployment of the

technology used to provide these service

features. The Board of Governors

determined that an effective date for

delivery confirmation and the electronic

form of return receipt (signature service)

will be selected through future action by

the Board.

A notice announcing the Governors’

decision and the issuance of final

Domestic Mail Classification Schedule

and Rate Schedule changes is contained

in a separate notice to be published in

the Federal Register.

This final rule contains the DMM

standards adopted by the Postal Service

to implement the Governors’ decision.

The revised DMM standards will take

effect on January 10, 1999. The

standards for delivery confirmation and

the electronic form of return receipt

(signature confirmation) service are not

included in this final rule. They will be

contained in a separate Federal Register

notice when an implementation date is

set by the Board of Governors.

Part A of this notice summarizes

major changes that have been made to

or added to the proposed

implementation standards since the

proposed rule. This includes changes

made because of differences in the

Postal Service’s proposal and the PRC’s

recommended decision, changes made

in response to the Governors’ decisions,

and changes made by the Postal Service

in response to mailer comments or for

other reasons. Part B provides a

summary of all of the changes in

Domestic Mail Manual standards made

as a result of Docket No. R97–1 and this

rulemaking process. Part C contains an

analysis of comments received on the

proposed rule and the Postal Service

responses. Part D summarizes the

changes to the DMM by DMM module,

followed by the text of the revised DMM

standards.

A. Major Changes and Additions Other

Than Rate and Fee Levels Since the

March 16, 1998, Proposed Rule

1. Express Mail

a. Hazardous Materials Surcharges

The Postal Rate Commission did not

recommend the proposed surcharges for

hazardous medical materials and for

other hazardous materials. Therefore,

provisions for hazardous materials

surcharges have not been included in

the DMM.

2. Priority Mail

a. Hazardous Materials Surcharges

The Postal Rate Commission did not

recommend the proposed surcharges for

hazardous medical materials and for

other hazardous materials. Therefore,

provisions for hazardous materials

surcharges have not been included in

the DMM.

b. Weight

The weight at which heavy First-Class

Mail pieces must be paid at the Priority

Mail rates is increased from First-Class

Mail weighing over 11 ounces to FirstClass Mail weighing over 13 ounces. At

the mailer’s option, any other mail

matter (including regular First-Class

Mail weighing 13 ounces or less) may be

mailed as Priority Mail.

3. First-Class Mail

a. Hazardous Materials Surcharges

The Postal Rate Commission did not

recommend the proposed surcharges for

hazardous medical materials and for

other hazardous materials. Therefore,

provisions for hazardous materials

surcharges have not been included in

the DMM.
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37947

b. Heavy Piece Discount

The additional heavy piece presort

discount of $0.046 for the first ounce of

mailpieces weighing more than 2

ounces remains in effect.

c. Maximum Weight

The maximum weight of First-Class

Mail is increased from 11 ounces to 13

ounces.

d. Prepaid Reply Mail

Prepaid Reply Mail will not be

implemented.

4. Periodicals

a. Eligibility for In-County High Density

Rates

Eligibility for the high density rate for

In-County pieces will be revised to

allow walk-sequenced pieces for a

carrier route to qualify when there are

either a minimum of 125 pieces for a

carrier route or addressed pieces for at

least 25 percent of the total active

possible deliveries on a carrier route.

5. Standard Mail (A)

a. Hazardous Materials Surcharges

The Postal Rate Commission did not

recommend the proposed surcharges for

hazardous medical materials and for

other hazardous materials. Therefore,

provisions for hazardous materials

surcharges have not been included in

the DMM.

b. ‘‘Presorted Standard’’ Marking

A two-year transition period (instead

of one year) will be permitted for

mailers to change their ‘‘Bulk Rate’’

markings to ‘‘Presorted Standard.’’ Until

January 10, 2001, mailers of regular rate

Standard Mail (A) material (matter at

regular Presorted Standard Mail (A),

regular automation, and regular

Enhanced Carrier Route rates) may use

either the ‘‘Bulk Rate’’ or the ‘‘Presorted

Standard’’ markings or their respective

authorized abbreviations on their

mailings. At the mailer’s option the

‘‘Presorted Standard’’ marking or its

abbreviation may be used instead of

‘‘Bulk Rate’’ or its abbreviation effective

immediately.

c. ‘‘RSS’’ Marking

The Postal Service will not require a

separate ‘‘RSS’’ marking for pieces that

are subject to the residual shape

surcharge.

d. Pieces Not Qualifying for Standard

Mail

(A). Mailers have indicated that they

may have pieces prepared with

Standard Mail (A) rate markings that

cannot be mailed at a Standard Mail (A)

rate under the provisions for ‘‘residual’’

pieces set forth in the proposed rule and

this final rule. Reasons include the

mailer having pieces remaining in a

mailing job that cannot be matched to a

correct 5-digit ZIP Code, or the mailer

choosing not to hand-sort handwritten

pieces that could not be barcoded and

sorted by a multi-line optical character

reader (MLOCR). In such instances,

mailers must pay single-piece FirstClass Mail or Priority Mail postage on

the pieces.

If mailers desire to receive First-Class

or Priority Mail service as applicable

based on the weight of the mailpieces

(including forwarding and return

services), they must re-envelope or

otherwise prepare the mailpieces so that

they bear only the proper First-Class

Mail or Priority Mail rate markings,

ancillary service endorsements, Address

Change Service (ACS) codes, etc.

Metered pieces weighing over 13 ounces

and less than 16 ounces must always be

prepared under this method.

Except for metered pieces weighing

over 13 ounces and less than 16 ounces,

mailers who do not desire to receive

First-Class or Priority Mail service on

such pieces may submit them ‘‘as is’’

(i.e., bearing the Standard Mail (A)

markings and endorsements). No

additional markings or postage are to be

added to these pieces. First-Class Mail

or Priority Mail postage must be paid for

these pieces using the appropriate FirstClass or Priority Mail postage statement.

Except for metered pieces weighing over

13 ounces and less than 16 ounces, mail

bearing metered or precanceled stamp

postage must, under this option, pay the

difference between the postage affixed

and the First-Class Mail or Priority Mail

rates by means of an advance deposit

account or by affixing a meter strip for

the appropriate amount to the postage

statement. If the pieces weigh 13 ounces

or less, mailers must use special line

items on the new First-Class postage

statements under the heading ‘‘From

Standard Mail (A)’’ to record the pieces

mailed. This option may be used for

fewer than 200 pieces of permit imprint

mail only if the pieces were part of a

larger mailing job and are submitted for

acceptance along with the mail and a

Standard Mail (A) postage statement for

the other pieces in the same mailing job.

Metered pieces weighing over 13 ounces

and less than 16 ounces cannot use this

option since there is no postage

statement on which they can be

reported and therefore must be reenveloped and prepared as Priority

Mail.

6. Standard Mail (B)

a. Barcoded Discounts

(1) Additional Barcode Option. A

fourth barcode symbology, UCC/EAN

Code 128, has been added. The USPS,

in cooperation with the parcel shipping

industry, has adopted the UCC/EAN

Code 128 as its preferred code structure

and symbology standard. The UCC/EAN

Code 128 permits encoding of either the

5-digit ZIP Code or the ZIP+4 code. The

ZIP Code information must be preceded

by the Application Identifier ‘‘420’’ that

signifies a domestic ZIP Code, and must

not include the trailing verifier

character ‘‘9’’ used with other barcode

symbologies. The UCC/EAN code 128

will become mandatory for the barcoded

discount in five years (January 10,

2004). During the 5-year phase-in

period, UCC/EAN Code 128, as well as

USS Code 128; USS Code I 2/5; and USS

Code 39 symbologies will be permitted.

(2) Numeric Equivalent of Barcode.

The requirement to print humanreadable characters representing the

numeric equivalent of the ZIP Code

information in the barcode (i.e.,

omitting the verifier character or, for

UCC/EAN Code 128, omitting the 3-digit

application identifier characters) near

the barcode will not be required if the

barcode is on the same label as the

address block and is placed in close

proximity to the address. The humanreadable numeric equivalent of the ZIP

Code information in the barcode will be

required for barcodes not printed on the

same label as the address block on

mailpieces.

(3) Parcel Post ASF Barcoded Rate

Exclusion. The exclusion from the

barcoded discount of machinable pieces

eligible for DBMC rates that are entered

at an auxiliary service facility (ASF) has

been revised. Since the Phoenix,

Arizona, ASF has parcel barcode

reading equipment, machinable pieces

of Parcel Post DBMC rate mail entered

at the Phoenix ASF will be eligible for

barcoded discounts. Since no other

ASFs have barcode reading equipment,

DBMC rate mail entered at ASFs other

than Phoenix will not be eligible for the

barcoded discount.

b. Hazardous Materials Surcharges

The Postal Rate Commission did not

recommend the proposed surcharges for

hazardous medical materials and for

other hazardous materials. Therefore,

provisions for hazardous materials

surcharges have not been included in

the DMM.
37948 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

c. Parcel Post BMC Presort and OBMC

Presort Discounts

(1) Mail Preparation. The proposed

requirement to prepare machinable

parcels in pallet boxes measuring 72

inches high and to fill the boxes with at

least 54 inches of mail to qualify for

these discounts is revised. The new

requirement is to prepare machinable

parcels in pallet boxes measuring 69

inches high and to fill the boxes with at

least 52 inches of mail to qualify for

these discounts. The preparation

requirements for nonmachinable mail

did not change.

(2) Documentation. The requirement

for documentation listing number of

pieces per individual pallet is

eliminated.

d. Parcel Post Oversized Pieces.

The 10% limit per mailing of pieces

that measure over 108 inches but not

more than 130 inches in combined

length and girth is removed. In its place

the PRC recommended and the

Governors of the Postal Service

approved oversized rates for such

pieces. These oversized rates are greater

than the rates for 70-pound parcels.

e. Parcel Post DSCF Rate

(1) Sacking Requirements Revised.

The minimum number of pieces per 5-

digit sack is revised from 10 pieces to

7 pieces. A provision also is added to

allow one overflow sack per 5-digit

destination. The overflow sack has no

minimum quantity requirement.

(2) New Pallet Preparation Option

Added. In response to mailer comments

that the pallet minimums were too high,

a new pallet preparation option has

been added. This option allows

preparation of 5-digit pallets with a

minimum of 35 pieces and 200 pounds

of mail, provided the average number of

pieces placed on pallets qualifying for

the DSCF rate in such a mailing is at

least 50 pieces. In order to document

that no pallet contains less than 35

pieces and 200 pounds and that the

average number of pieces per pallet

claiming the DSCF rate is at least 50

pieces, mailers will be required to

submit detailed documentation and

place sequential identification numbers

on qualifying pallets of DSCF rate mail.

The documentation must list each pallet

in sequential order by pallet

identification number. The listing must

show for each pallet: the pallet

identification number, the 5-digit ZIP

Code of the pallet, the total weight of

pieces on the pallet, the total number of

pieces on the pallet, and the cumulative

total of pieces (i.e., the number equal to

the number of pieces for that pallet plus

the sum of the pieces on all pallets

listed above it).

(3) Overflow Provisions for Palletized

Mail Added. Provisions are added to

allow overflow from 5-digit pallets to be

placed in corresponding 5-digit sacks.

The overflow 5-digit sacks have no

minimum quantity requirement, and the

pieces placed in them will qualify for

the DSCF rate. Mailers will also have

the option of preparing a 5-digit

overflow pallet. However, the pieces on

overflow pallets, which by definition

contain less than the minimum quantity

required for a qualifying DSCF rate

pallet, are not eligible for DSCF rates

and are subject to the DBMC rates.

(4) Pallet Boxes. The prohibition

against use of pallet boxes on pallets for

the DSCF rate is eliminated. Pallet boxes

on pallets will be permitted for any 5-

digit facility that can handle pallets,

provided the pallet boxes measure no

more than 60 inches high and meet the

pallet box provisions in DMM M041.

Mail prepared in pallet boxes is subject

to the same pallet minimum preparation

options as parcels placed directly on

pallets.

(5) Sacks on Pallets. Under DMM

M045.12, mailers may consolidate 5-

digit sacks prepared under DMM M630

and/or under DMM M045.11 that

qualify for the DSCF rate on an SCF

pallet. Both 5-digit sacks meeting or

exceeding the 7-piece minimum and

overflow sacks (overflow from sacks and

overflow from pallets) may be palletized

in this manner. However, if in the same

mailing, mail is palletized under

M045.11.1 and sacked under M630, the

sacks that are prepared as overflow from

pallets must, at the time of acceptance,

be separated from sacks prepared under

M630. SCF pallets containing 5-digit

sacks qualifying for the DSCF rate may

be prepared without having to first

prepare all possible 5-digit pallets and

without having to meet a 250-pound

pallet minimum. A special pallet label

is specified for these pallets in M045.

(6) Additional Information Pertaining

to Drop Shipment Product. Mailers must

use the following additional information

when using the Drop Shipment Product

to determine whether mail for a 5-digit

ZIP Code delivery unit may be prepared

on pallets to qualify for the DSCF rate.

The DMM standards are revised to

specify that when the Drop Shipment

Product shows that mail for a single 5-

digit ZIP Code area is delivered from

more than one facility, the facility listed

in the Drop Shipment Product that

delivers mail to the majority of city

carrier routes will be considered the

delivery unit for parcel post. Two

exhibits, Exhibits E652.6.0 and 652.7.0

that contain exceptions to the ‘‘majority

of city carriers’’ rule, are also added to

the DMM. If a 5-digit ZIP Code is listed

in DMM Exhibit E652.6.0 or E652.7.0,

the facility listed in one of those

exhibits must be used to determine the

name of the delivery unit. The name of

the delivery unit must then be looked

up in the Drop Shipment Product to

determine if mail for it, and therefore

mail for the 5-digit ZIP Code, can be

prepared on pallets to qualify for the

DSCF rate. At some point in the future

the information in these two exhibits

will be incorporated in the Drop

Shipment Product.

(7) Nonmachinable Outsides.

Nonmachinable outside (NMO) parcels

by definition cannot be prepared in

sacks because they will not fit in a sack.

Therefore, NMOs must be prepared

directly on pallets or in pallet boxes on

pallets. If overflow pallets are prepared,

the pieces on such pallets are subject to

the DBMC rates. The DSCF rate is not

available for NMOs at those 5-digit

delivery units that cannot handle

palletized mail as listed in the Drop

Shipment Product and in Exhibits

E652.6.0 and E652.7.0.

(8) Exceptions to DMM Exhibit

E652.5.0. Provisions are added to allow

mailers to submit a written request to

the Area Manager, Operations Support,

for permission to bring palletized mail

for a 5-digit ZIP Code area listed in

DMM Exhibit E652.5 to the DSCF rather

than to the applicable BMC. Such

exceptions must be requested at least 15

days in advance and may be granted for

a limited period of time only.

(9) Separation of Perishable and

Nonperishable Parcels. The requirement

to separate perishable and

nonperishable parcels is deleted from

the final DMM rules.

f. Parcel Post DDU Rate

(1) Pallet Boxes. The prohibition

against the use of pallet boxes on pallets

is eliminated. Pallet boxes on pallets

will be permitted for any 5-digit facility

that can handle pallets, provided that

the pallet boxes measure no more than

60 inches high and meet the pallet box

provisions in DMM M041.

(2) Additional Lists Pertaining to Drop

Shipment Product. Mailers must use the

following additional information when

using the Drop Shipment Product to

determine the location of the delivery

unit for a 5-digit ZIP Code area. When

mail for a single 5-digit ZIP Code area

is delivered from more than one facility,

the facility listed in the Drop Shipment

Product that delivers mail to the

majority of city carrier routes is the

delivery unit at which mail must be

entered to claim the DDU rate. There are

two exceptions to this general rule. Two
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37949

exhibits, Exhibit E652.6.0 and Exhibit

E652.7.0 are added to DMM E652.

Exhibit E652.6.0 contains exceptions to

the ‘‘majority of city carrier routes’’ rule.

Exhibit E652.7.0 contains other

anomalous situations including those

where a parcel annex is used to deliver

mail for multiple 5-digit ZIP Codes. If a

5-digit ZIP Code is listed in DMM

Exhibit E652.6.0 or Exhibit E652.7.0, the

facility location in one of those lists is

the delivery unit to which the mail must

be brought to qualify for the DDU rate.

This facility must be looked up in the

Drop Shipment Product to determine if

that facility can handle pallets and (for

facilities listed in Exhibit E652.6.0) to

determine the address of the facility.

(3) Pallet Stacking. Mailers may stack

pallets of mail entered at destination

delivery units provided that the mailer

unloads and unstacks the pallets at the

delivery unit and removes any strapping

material.

(4) Appointments. To facilitate the

scheduling of drop shipments to

delivery units, the Postal Service will

allow standing appointments if

shipment frequency is weekly or more

often. A provision also has been added

in E652.3.4 to specify that appointments

are required for mixed loads of

Periodicals and Standard Mail (B)

entered at destination entry rates. DMM

E250.2.4 already contains a similar

provision for DDU entry of mixed loads

of Periodicals and Standard Mail.

(5) Grace Period for Late Arrivals. The

grace period allowed for late arrival of

shipments at DDUs, previously stated to

be 1 hour, is revised to 20 minutes.

g. Markings

(1) Parcel Post. Except for mail

qualifying for a drop shipment rate,

mailers will be given a one-year grace

period, until January 10, 2000, to print

the ‘‘Parcel Post’’ or ‘‘PP’’ markings in

the postage area. As of January 10, 1999,

Drop Shipment rate mail must show the

‘‘Parcel Post’’ or ‘‘PP’’ marking in the

postage area and the marking ‘‘Drop

Ship’’ or ‘‘D/S’’ in either the postage

area or on the line above or two lines

above the address. An exception is that

DBMC rate mailers currently using the

‘‘DBMC Parcel Post’’ or ‘‘DBMC PP’’

marking may continue to do so until

January 10, 2000.

(2) Standard Mail (B) Other than

Parcel Post. Mailers not already doing

so will have until January 10, 2000, to

place the current required subclass

markings ‘‘Bound Printed Matter,’’

‘‘Special Standard,’’ and ‘‘Library Mail’’

or ‘‘Library Rate’’ in the postage area (as

opposed to elsewhere on the mailpiece).

(3) Bound Printed Matter. At the

mailer’s option the ‘‘Presorted’’ marking

may be used instead of ‘‘Bulk Rate’’

effective immediately. (This marking

will be required effective January 10,

2000.) In addition, mailers may use the

marking ‘‘Presorted Standard’’ (or

‘‘PRSRT STD’’) instead of ‘‘Presorted’’

(or ‘‘PRSRT’’) wherever the ‘‘Presorted’’

marking is required or permitted.

7. Special Services

a. Bulk Insurance

A provision requiring an electronic

manifest to qualify for the bulk

insurance discount was recommended

by the PRC and approved by the

Governors of the Postal Service.

Therefore, one of the requirements to

obtain this discount will be to provide

a hard copy of Form 3877, Firm Mailing

Book for Accountable Mail (or

facsimile), and a copy of Form 3877 on

a diskette or other electronic medium.

When systems that electronically

capture information on accountable

mail are completed and programming

changes that will tie the St. Louis ASC

into these systems are completed,

mailers will be required to file claims

electronically. When or before these

changes and systems are completed,

bulk insurance mailers will be provided

with instructions for a new format for

the electronic Form 3877 and with

instructions for electronically filing

claims.

b. Business Reply Mail

Mailers will have until January 10,

2001, to comply with the standard that

Qualified Business Reply Mail pieces

and other BRM pieces bearing a barcode

that measure more than 41⁄4 inches by 6

inches must meet a minimum thickness

requirement of .009 inch. In addition,

mailers of QBRM and other BRM pieces

that bear a barcode will be given until

January 10, 2001, to meet the amended

requirements for the barcode clear zone,

window placement for lower right

barcodes, and placement of the leftmost

bar of lower right barcodes. The barcode

specifications that are in DMM C840

will be required, rather than optional.

The basis weight requirement for

envelopes in C810.7.1 will not apply to

BRM. BRM envelopes must continue to

meet a minimum paper basis weight of

20 pounds (measured using 500 sheets

of 17- by 22-inch paper). The standard

in current S922.6.4 that envelope

material must not have a

phosphorescence exceeding 4.0

phosphor meter units is retained and

corrected to state that envelope material

must not have a red fluorescence

exceeding 4.0 phosphor meter units.

c. Delivery Confirmation

Standards concerning delivery

confirmation were removed pending an

implementation date.

d. Merchandise Return Service

The Postal Service revised the

requirements for preprinted rate

markings. The Priority Mail marking

will not be required to be preprinted on

all matter that might be subject to that

rate upon return. It is understood that

permit holders may not be able to

predict whether a piece that might be

returned will weigh over 13 ounces but

less than 16 ounces and therefore need

a Priority Mail marking on the

merchandise return label. Therefore, the

permit holder must preprint a Priority

Mail marking only when it is desired

that the mail matter be returned at those

rates regardless of its weight. Pieces

prepared with merchandise return

labels that do not contain a preprinted

rate marking will be returned at the

First-Class Mail rates if weighing 13

ounces or less, at the Priority Mail rates

if weighing over 13 ounces but less than

16 ounces, and at the Parcel Post rates

if weighing 16 ounces or more.

d. Return Receipt

The Postal Service determined not to

revise DMM D042.1.7.

B. Summary of all DMM Revisions for

R97–1

1. Express Mail

a. Rate Highlights

Overall, Express Mail rates will

increase 9%. For Post Office to

Addressee service, the letter rate will

increase to $11.75 and the 2-pound flat

rate will increase to $15.75. The fee for

pickup service will increase from $4.95

to $8.25 per occurrence.

b. Rate Structure

There are no changes to the rate

structure.

2. Priority Mail

a. Rate Highlights

On average, Priority Mail rates will

increase 5.6%. The fee for pickup

service will increase from $4.95 to $8.25

per occurrence.

b. Classification and Rate Structure

(1) Keys and Identification Devices.

Keys and identification devices that

weigh more than 13 ounces but not

more than 2 pounds will be subject to

the 2-pound Priority Mail rate plus a

$0.30 fee.

(2) Elimination of Presort Category.

The Presorted Priority Mail rate category
37950 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

will be eliminated. Therefore, DMM

labeling list L102, ADCs—Presorted

Priority Mail, also will be eliminated.

(3) Delivery Confirmation. A new

delivery confirmation service will be

available with Priority Mail in early

1999. See further details under ‘‘Special

Services.’’

3. First-Class Mail

a. Rate Highlights

The single-piece first-ounce letter rate

will be increased one cent from $0.32 to

$0.33, and the rate for each additional

ounce will decrease to $0.22. The

nonstandard surcharges for non-cardrate pieces will not increase and will

remain at $0.11 for single-piece rate

mail and $0.05 for presorted mail. For

card rates, no change will be made to

the single-piece rates, nonautomation

Presorted rates, automation 3-digit rates

and automation basic rates. No change

will be made to 3⁄5-digit automation flat

rates. Small increases will be made to

other automation rates and Presorted

rates. The annual presort mailing fee

will be increased from $85.00 to

$100.00.

b. Classification and Rate Structure

(1) Increase in Maximum Weight. The

maximum weight of First-Class Mail

will be increased from 11 ounces to 13

ounces.

(2) Keys and Identification Devices.

Keys and identification devices that

weigh 13 ounces or less will be subject

to the applicable single-piece letter rate,

plus a $0.30 fee and, if applicable, the

nonstandard surcharge.

(3) Qualified Business Reply Mail. A

new classification category and rate

structure for qualified business reply

mail (QBRM) that must be letter-size

(including cards), automationcompatible, and barcoded will be

added. As a result, the BRMAS fee

category will be eliminated. The rate

structure for QBRM includes a lower

first-ounce rate. The fee structure for

QBRM requires an annual permit fee, an

annual accounting fee, and a fee for

each piece returned. More specific

requirements for this new classification

category are described under DMM E150

and under ‘‘Special Services’’ below.

c. Rate Markings

The abbreviation ‘‘PRSRT’’ will be

permitted for the required ‘‘Presorted’’

marking.

4. Periodicals

a. Rate Highlights

There will be average rate increases of

4.6% for Regular, 1.1% for In-County,

8.0% for Nonprofit, and 12.1% for

Classroom publications. Authorization

fees will not change, except that the

additional entry fee decreases from

$85.00 to $50.00.

b. Classification and Rate Structure

(1) Per-Piece Rates. Separate 5-digit

presort per-piece rates and 3-digit

presort per-piece rates will be added for

Regular, Nonprofit, Classroom, and InCounty subclasses. Furthermore, the 3-

digit presort level rates will apply to

both unique and nonunique 3-digit ZIP

Code prefixes.

To qualify for the nonautomation 5-

digit per-piece rates, mail must be

prepared in a 5-digit package of six or

more pieces and must be containerized

as follows: for letter mail, be placed in

a 5-digit tray; for nonautomation flat

mail, be placed in a 5-digit sack or on

any presort level of pallet. To qualify for

automation 5-digit per-piece rates for

letters, mail must be part of a group of

150 pieces for the same 5-digit or 5-digit

scheme, properly placed in a 5-digit or

5-digit scheme tray. To qualify for

automation 5-digit per-piece rates for

flats, mail must be prepared in a 5-digit

package of six or more pieces and

placed in any level of sack or on any

level of pallet.

To qualify for the nonautomation 3-

digit per-piece rates, sacked flat-sized

mail must be prepared in a 5-digit

package of six or more pieces or in a 3-

digit package of six or more pieces, and

must be placed in a 3-digit sack; trayed

letter-size mail must be prepared in a 5-

digit package of six or more pieces or in

a 3-digit package of six or more pieces,

and must be placed in a 3-digit tray.

Palletized flat-sized mail must be

prepared in a 3-digit package of six or

more pieces and placed on a 3-digit or

higher (e.g., SCF, ADC) level of pallet.

To qualify for automation 3-digit perpiece rates for letters, mail must be part

of a group of 150 pieces for the same 3-

digit or 3-digit scheme and be properly

placed in a 3-digit or 3-digit scheme

tray. To qualify for automation 3-digit

per-piece rates for flats, mail must be

prepared in a 3-digit package of six or

more pieces and placed in a 3-digit or

higher (e.g. ADC or mixed ADC) level of

sack or on a 3-digit or higher (e.g., SCF,

ADC) level of pallet.

(2) Eligibility for In-County High

Density Rates. Eligibility for the high

density rate for In-County pieces will be

revised to allow walk-sequenced pieces

for a carrier route to qualify when there

are either a minimum of 125 pieces for

the carrier route, or addressed pieces for

at least 25 percent of the total active

possible deliveries on the carrier route.

c. Mail Preparation

(1) Automation Letters. Preparation of

the 5-digit or 5-digit scheme sort for

letter-size automation rate mailings will

be revised from a required level of sort

to an optional level of sort.

(2) SCF Sack. The current optional

SCF sack for nonletter mail will be

revised to a required level of

preparation. Preparation of an optional

origin/required entry SCF sack will be

added. Preparation of an optional

origin/required entry 3-digit sack will be

eliminated. SCF packages are not and

will not be permitted.

d. Forwarding and Return

Charges for the return of Periodicals

mail bearing the ‘‘Address Service

Requested’’ endorsement will be paid at

the First-Class Mail rates for pieces

weighing 13 ounces or less and at the

Priority Mail rates for pieces weighing

more than 13 ounces. (Priority Mail

rates also apply to pieces weighing 16

ounces or more.) This is due to the

elimination of the Standard Mail (A)

single-piece rates discussed below.

5. Standard Mail (A)

a. Rate Highlights

There will be average rate increases of

2.6% for Regular, 2.3% for Enhanced

Carrier Route, and 14.0% for Nonprofit

subclasses. On average, there will be a

8.0% decrease in Nonprofit Enhanced

Carrier Route rates. Nonprofit and

Nonprofit ECR pound rates will

decrease. Regular and ECR pound rates

will remain the same. For the first time,

the automation 5-digit letter rate will be

lower than the basic Enhanced Carrier

Route rate. The basic Enhanced Carrier

Route minimum per-piece rates will be

the same for letter-size and for

nonletter-size pieces. The destination

entry discounts will maintain their

current discount differentials between

BMC and SCF and between SCF and

DDU. The annual presort mailing fee

will increase from $85.00 to $100.00.

b. Rate Structure

(1) Elimination of Single-Piece Rates.

The single-piece Standard Mail (A) rates

will be eliminated. This will affect the

treatment of pieces in situations where

there are fewer than 200 pieces

remaining in a mailing job after

preparation of an Enhanced Carrier

Route and/or an automation rate

mailing, situations in which there are

fewer than 200 pieces in a mailing job,

or situations in which the pieces are not

or may not be presorted. See ‘‘Mail

Preparation’’ below for further

information. It also affects the fees for

forwarding and return of Standard Mail
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37951

(A) as described below under

‘‘Forwarding and Return.’’ With one

exception, single pieces that weigh less

than 16 ounces will be subject to return

postage at single-piece First-Class or

Priority Mail rates multiplied by 2.472.

The exception is that single pieces

weighing less than 16 ounces that could

qualify for single-piece Special Standard

Mail or Library Mail rates will continue

to be eligible for those rates upon return

if properly endorsed because there are

no minimum weight requirements for

those two subclasses of Standard Mail

(B).

(2) Residual Shape Surcharge. Pieces

that are prepared as parcels or that are

not letter-size or flat-size will be subject

to a $0.10 per piece residual shape

surcharge in addition to the applicable

nonletter postage. This surcharge

applies to such pieces mailed at all

Standard Mail (A) subclasses (Regular,

Enhanced Carrier Route, Nonprofit,

Nonprofit Enhanced Carrier Route).

c. Mail Preparation

(1) Bulk Rate Markings and

Nomenclature. Effective January 10,

2001, the basic rate marking

requirements for regular rate mailings

(including Enhanced Carrier Route) will

be changed from ‘‘Bulk Rate’’ or ‘‘Blk.

Rt.’’ to ‘‘Presorted Standard’’ or ‘‘PRSRT

STD.’’ During the two-year transition

period, either the ‘‘Bulk Rate’’ or the

‘‘Presorted Standard’’ markings or their

authorized abbreviations will be

acceptable. For consistency, the DMM

will use the term ‘‘Presorted Standard

Mail (A)’’ or ‘‘Presorted Standard’’ when

referring to the mailings and rates

currently referred to as ‘‘nonautomation

presort (3/5 and basic) Standard Mail

(A).’’ At the mailer’s option the

‘‘Presorted Standard’’ or ‘‘PRSRT STD’’

marking may be used instead of ‘‘Bulk

Rate’’ effective immediately.

(2) Markings for Standard Mail (A)

Matter Paid at Standard Mail (B) Rates.

Effective January 10, 1999, mailings

paid at Standard Mail (B) rates under

the exception in DMM E612.4.6 must

bear the appropriate Standard Mail (B)

rate marking, not the applicable

Standard Mail (A) rate marking. DMM

E612.4.6 contains provisions that allow

Standard Mail (A) matter weighing less

than 16 ounces to pay Standard Mail (B)

rates if those rates are lower than

Standard Mail (A) rates and the matter

and the mailing could qualify for the

Standard Mail (B) rate except for weight.

For example, if a mailer had flat-size

printed matter pieces that met the

qualifications for Bound Printed Matter

in DMM E630 (until January 10, DMM

E620) except that the pieces each

weighed less than one pound, and if the

applicable Bound Printed Matter Rates

were less than the applicable Standard

Mail (A) rates, the mailer could presort

them as Standard Mail (A) flats and

claim basic presorted Bound Printed

Matter rates. Under this example, if the

pieces weighed four ounces and the

mailing was only for the local zone, the

Bound Printed Matter rates would be

lower than the Presorted Standard Mail

(A) rates. Therefore, the mailer could

claim local zone Bound Printed Matter

rates if: (1) the pieces are presorted

according the Presorted Standard Mail

(A) requirements to 5-digit, 3-digit,

ADC, and Mixed ADC (that are similar

to the presort requirements for presorted

Bound Printed Matter), (2) the pieces are

marked ‘‘Presorted’’ or ‘‘Presorted

Standard’’ and ‘‘Bound Printed Matter,’’

and (3) documentation is submitted to

substantiate that the pieces qualified for

the local zone rate.

(3) Elimination of Single-Piece Rates.

Currently, Standard Mail (A) singlepiece rates apply to pieces that cannot

meet the separate minimum volume

requirement of 200 pieces for a

Presorted Standard mailing either

because the mailing job itself contains

fewer than 200 pieces or because after

preparing an Enhanced Carrier Route

and/or automation mailing the pieces

remaining in the mailing job are fewer

than 200. Other instances where singlepiece rates currently apply include

mailers using MLOCRs to prepare the

mail who may have pieces remaining in

a mailing job that could not be matched

to a 5-digit ZIP Code, or mailers who

choose not to hand-sort handwritten

pieces that could not be barcoded and

sorted by a MLOCR. The single-piece

Standard Mail (A) rate is eliminated.

Mailers will now have three options

concerning preparation and payment for

mailing pieces that formerly were paid

at the single-piece Standard Mail (A)

rates.

Option one applies to pieces that

remain in a mailing job after a mailer

has prepared an Enhanced Carrier Route

and/or an automation mailing. A new

provision in DMM E630.1.1 and 1.2 will

allow pieces in an Enhanced Carrier

Route rate mailing and/or in an

automation rate mailing that have each

separately met a 200-piece or 50-pound

minimum quantity requirement to be

counted toward the minimum quantity

requirement for a Presorted Standard (3⁄5

and basic rate) mailing, provided that

(1) the Enhanced Carrier Route rate

mailing and/or the automation mailing,

and the Presorted Standard mailing are

part of the same mailing job, and (2) the

mailings are all reported on the same

postage statement. Under no

circumstances may pieces mailed at the

Presorted Standard (nonautomation 3⁄5

and basic) rates be counted toward the

minimum volume requirements for an

Enhanced Carrier Route or an

automation rate mailing. The pieces

mailed at the Presorted Standard rates

under this provision must meet all other

requirements for those rates, including

the sortation and other preparation

requirements in M610. As prescribed in

DMM M610.1.1e, the pieces mailed at

the Presorted Standard rates must not

bear any Enhanced Carrier Route or

automation markings. Only ‘‘Presorted

Standard’’ (or, until January 10, 2001,

‘‘Bulk Rate’’), ‘‘Nonprofit Organization,’’

or their applicable authorized

abbreviations may appear on pieces

mailed at the Presorted Standard rates.

Options two and three apply to

mailings that cannot qualify for the

Presorted Standard Mail rates under the

above provisions for residual minimum

volume. These might be mailings

containing fewer than 200 pieces that

cannot be reported on the same postage

statement as other mailings in the

mailing job because the pieces have a

different per piece weight (because of

different editions in the same job). They

could also be pieces remaining after

sorting a mailing job that could not be

matched to a correct 5-digit ZIP Code,

or pieces that could not be barcoded and

sorted by a MLOCR because they bear

handwritten addresses and the mailer

chose not to hand-sort the pieces. In

such instances, mailers must pay singlepiece First-Class Mail or Priority Mail

postage on the pieces.

Option two is for mailers of such

pieces who desire to receive First-Class

or Priority Mail service (including

forwarding and return services) on such

pieces as applicable, based on the

weight of the mailpieces. Under this

option, mailers must re-envelope the

pieces or initially prepare them so that

they bear only the proper First-Class

Mail or Priority Mail markings, ancillary

service endorsements, ACS codes, etc.

These pieces must not bear Standard

Mail (A) markings, endorsements or

ACS codes. This option will also be

required for metered mailpieces

weighing over 13 ounces, but less than

16 ounces, that cannot be mailed under

option one.

Option three is for mailers who have

pieces (other than metered pieces

weighing over 13 ounces, but less than

16 ounces) that cannot qualify for the

Presorted Standard Mail (A) rates, but

that are prepared as Standard Mail (A),

and who do not desire to receive FirstClass Mail or Priority Mail service for

those pieces. Under this option the

pieces may be submitted ‘‘as is’’ (i.e.,

bearing the Standard Mail (A) markings
37952 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

and endorsements). No additional

markings or postage are to be added to

these pieces. Single-piece First-Class

Mail or Priority Mail postage must be

paid for these pieces using the

appropriate First-Class or Priority Mail

postage statement. Mail bearing metered

or precanceled stamp postage must pay

the difference between the postage

affixed at the Standard Mail (A) rates

and the single-piece First-Class Mail or

Priority Mail rates by means of an

advance deposit account or by affixing

a meter strip for the appropriate amount

to the postage statement. Mail bearing

permit imprints must pay the singlepiece First-Class or Priority Mail postage

by completing the appropriate FirstClass or Priority Mail postage statement.

If the pieces weigh 13 ounces or less,

mailers must use special line items

under Part C on the reverse side of Form

3600–R, Postage Statement—First-Class

Mail Permit Imprint, or Form 3600–P,

Postage Statement—First-Class Mail

Postage Affixed. The new line items on

the postage statements appear under the

heading ‘‘From Standard Mail (A).’’ If

the pieces weigh over 13 ounces but less

than 16 ounces, and are paid with

permit imprint, Form 3600–PM, Postage

Statement—Priority Mail Permit

Imprint, must be appropriately

completed to show that the pieces are

from a Standard Mail (A) mailing.

Option 3 may be used for permit

imprint mail only if there are at least

200 pieces to be mailed under this

option, or if the pieces were part of a

larger mailing job and are submitted for

acceptance along with the mail and a

Standard Mail (A) postage statement for

the other pieces in the same mailing job.

d. Forwarding and Return. With two

exceptions, charges for the forwarding

and return of Standard Mail (A) are paid

at the First-Class Mail rates for pieces

weighing 13 ounces or less and at the

Priority Mail rates for pieces weighing

over 13 ounces. This is because singlepiece Standard Mail (A) rates have been

eliminated as discussed above. The

exceptions are (1) matter returned under

Bulk Parcel Return Service (BPRS) and

(2) matter that qualifies for a singlepiece Special Standard Mail or Library

Mail rate under DMM E630 and is

endorsed to show that forwarding and

return is requested at one of those rates.

6. Standard Mail (B)

a. Rate Highlights

Some Parcel Post rates will decrease

and many will increase, some as much

as 30%. New rate categories and

discounts will be added to Parcel Post

as described in 6b below. On average,

Bound Printed Matter rates will increase

5%. The discount will increase for

sorting Bound Printed Matter to carrier

route. Special Standard Mail rates will

decrease. Library Mail rates will be the

same as Special Standard Mail rates,

resulting in a rate increase. The annual

fees for destination bulk mail center

(DBMC) rates and presorted Special

Standard Mail will increase from $85.00

to $100.00. The fee for pickup service

for Parcel Post will increase from $4.95

to $8.25 per occurrence. (Pickup service

is not available for mailings claiming

Parcel Post destination entry rates or

Origin Bulk Mail Center (OBMC Presort)

Presort discounts.)

b. Rate Structure for All Standard Mail

(B)

(1) Barcoded Discount. A discount of

$0.03 per piece will apply to

machinable pieces in mailings meeting

a 50-piece minimum quantity

requirement that bear a correct and

properly prepared barcode representing

the 5-digit ZIP Code (or, for UCC/EAN

Code 128, the ZIP+4 code) of the

address on the mailpiece. Mail for each

Standard Mail (B) subclass (Parcel Post,

Bound Printed Matter, Special Standard,

and Library Mail) must separately meet

the 50-piece minimum volume

requirement.

The barcode specifications and clear

zone requirements are in DMM C850.

UCC/EAN Code 128 as well as USS

Code 128; USS Code I 2/5; and USS

Code 39 symbologies will be permitted

until January 10, 2004. Beginning

January 10, 2004, only UCC/EAN Code

128 will be permitted. For all barcode

symbologies except UCC/EAN Code

128, the barcode must represent the

correct 5-digit ZIP Code of the address

on the mailpiece followed by the

verifier character ‘‘9.’’ The UCC/EAN

Code 128 barcode must represent either

the correct 5-digit ZIP Code or the ZIP+4

code for the address on the mailpiece.

For the UCC/EAN Code 128 barcode, the

ZIP Code information must be preceded

by the Application Identifier ‘‘420’’ that

signifies a domestic ZIP Code, and must

not include the trailing verifier

character ‘‘9’’ used with the other

barcode symbologies. Mailers must print

human-readable characters representing

the numeric equivalent of the ZIP Code

information in the barcode (i.e.,

omitting the verifier character or, for

UCC/EAN Code 128, omitting the 3-digit

application identifier characters)

preceded by the word ‘‘ZIP’’ near the

barcode. An exception is that the

numeric equivalent of the ZIP Code

information in the barcode will not be

required if the barcode is on the same

label as the address block and is placed

in close proximity to the address.

The barcoded discount reflects the

savings for parcels that are routinely

processed individually on BMC parcel

sorters equipped with barcode readers.

Therefore, the discount will not be

available for nonmachinable parcels and

will not be available for parcels that are

intended to bypass individual BMC

sortation. The barcoded discount will

therefore not be available for: (1) any

nonmachinable parcel, (2) Parcel Post

mail entered at destination sectional

center facility (DSCF) rates, (3) Parcel

Post mail entered at destination delivery

unit (DDU) rates; (4) Parcel Post DBMC

rate mail entered at any auxiliary

service facility (ASF) other than the ASF

at Phoenix, AZ (which has barcode

readers), (5) Bound Printed Matter at the

Carrier Route rates, and (6) Presorted

Special Standard Mail at the 5-digit rate.

(2) Delivery Confirmation. A new

delivery confirmation service will be

available for Standard Mail (B) in early

1999. See further details under ‘‘Special

Services.’’

c. Rate Structure for Parcel Post

(1) Presort Discounts for Inter-BMC

Rates. A new Origin Bulk Mail Center

Presort (OBMC Presort) discount of

$0.57 per piece will be available for

mail entered at a BMC that meets

sortation criteria specific for the type of

parcel. Machinable parcels must be

sorted to BMCs and nonmachinable

parcels must be sorted to BMCs and

ASFs. A new BMC Presort discount of

$0.22 per piece will be available for

pieces that are sorted in the same

manner as those qualifying for the

OBMC Presort discount (sorted to BMCs

if machinable parcels or sorted to BMCs

and ASFs if nonmachinable parcels) and

entered at any postal facility other than

a BMC that accepts bulk mailings. To

qualify for either of these rates, pieces

must be part of a mailing of at least 50

pieces mailed at Parcel Post rates. See

‘‘Mail Preparation’’ below for more

details.

(2) Drop Shipment Rates. New

destination delivery unit (DDU) rates

will be available for pieces entered at

the delivery unit from which the parcels

are delivered. DDU rate pieces must be

part of a mailing of at least 50 pieces

mailed at Parcel Post rates. New rates

will also be available for pieces entered

at the destination sectional center

facility (DSCF). DSCF rate pieces must

be part of a mailing of at least 50 pieces

mailed at Parcel Post rates. DSCF rate

pieces must be sorted to 5-digit ZIP

Codes as described under ‘‘Mail

Preparation’’ below.

(3) Balloon Rate. Any item weighing

less than 15 pounds and measuring over

84 inches (but not more than 108
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37953

inches) in combined length and girth

will be charged the applicable Parcel

Post rate for a 15-pound parcel.

(4) Oversized Pieces. Pieces in a

Parcel Post mailing will be permitted to

measure over 108 inches, but not more

than 130 inches, in combined length

and girth. These pieces will be charged

new oversized rates which are higher

than the 70-pound rates.

d. Markings

(1) General. Currently, mailers are

required to place subclass markings

‘‘Bound Printed Matter,’’ ‘‘Special

Standard,’’ and ‘‘Library Rate’’ or

‘‘Library Mail’’ (or authorized

abbreviations) on pieces qualifying for

those rates. However, the Domestic Mail

Manual does not clearly specify where

on the mailpiece these markings must

appear. Effective January 10, 2000, the

current required subclass markings

(‘‘Bound Printed Matter,’’ ‘‘Special

Standard,’’ and ‘‘Library Rate’’ or

‘‘Library Mail’’) or their authorized

abbreviations will be required to be

placed in the postage area on each

mailpiece (i.e., be printed or produced

as part of, or directly below, or to the

left of the permit imprint indicia, meter

stamp or impression, or adhesive or

precanceled stamp). The Postal Service

prefers that mailers begin to do this as

soon as possible.

(2) Parcel Post Mail. Except for mail

qualifying for drop shipment rates,

mailers will have until January 10, 2000,

to place a ‘‘Parcel Post’’ or ‘‘PP’’ rate

marking in the postage area on all Parcel

Post Mail. Effective January 10, 1999,

mailings qualifying for the new DSCF

and DDU drop shipment rates must bear

the marking ‘‘Drop Ship’’ or its

abbreviation ‘‘D/S’’ and the marking

‘‘Parcel Post’’ or ‘‘PP.’’ The ‘‘Parcel

Post’’ or ‘‘PP’’ marking must appear in

the postage area (printed or produced as

part of, or directly below, or to the left

of the permit imprint or metered

postage) and the marking ‘‘Drop Ship’’

or ‘‘D/S’’ must appear either in the

postage area or in the line above or two

lines above the address as described in

DMM M012. DBMC rate mail will also

be required to bear the ‘‘Drop Ship’’ and

‘‘Parcel Post’’ markings or authorized

abbreviations according to these

placement rules. However, since DBMC

rate mail is currently required to bear

the marking ‘‘DBMC Parcel Post,’’ the

Postal Service is allowing mailers a oneyear grace period to convert to the new

marking. From January 10, 1999, to

January 10, 2000, DBMC rate mailers

may use either ‘‘DBMC Parcel Post’’ or

‘‘Parcel Post’’ and ‘‘Drop Ship’’ (or their

applicable abbreviations). Effective

January 10, 2000, DBMC Parcel Post

must bear the new ‘‘Parcel Post’’ and

‘‘Drop Ship’’ markings, or their

applicable abbreviations.

Effective January 10, 1999, the Postal

Service is eliminating the requirement

to show the 5-digit or 3-digit ZIP Code

of the post office of mailing in the drop

shipment marking if the postage for the

piece is paid with a permit imprint and

the office of mailing is in a different 3-

digit ZIP Code area from the post office

in the return address. The requirement

for a ‘‘Bulk Rate’’ marking also will be

eliminated. Mailpieces bearing the 3-

digit ZIP Code of the office of mailing

and ‘‘Bulk Rate’’ markings will be

accepted until January 10, 2000.

(3) Bound Printed Matter. Effective

January 10, 2000, the ‘‘Bound Printed

Matter’’ marking must appear in the

postage area of single-piece rate mail.

Until January 10, 2000, the ‘‘Bound

Printed Matter’’ marking may appear

elsewhere on the mailpiece.

The marking ‘‘Bulk Rate’’ or ‘‘Blk. Rt.’’

will be changed to ‘‘Presorted’’ or

‘‘PRSRT’’ for bulk Bound Printed Matter

mailings. The marking ‘‘Presorted

Standard’’ or ‘‘PRSRT STD’’ also will be

permissible. The ‘‘Presorted’’ or

‘‘Presorted Standard’’ portion of the

marking will be permitted to appear in

either the postage area or in the line

above or two lines above the address.

Mailers will be given until January 10,

2000, to begin using the new markings.

Between January 10, 1999 and January

10, 2000, mailers may use either ‘‘Bulk

Rate’’ or ‘‘Presorted’’ or their respective

authorized abbreviation. At the mailer’s

option the ‘‘Presorted’’ marking may be

used instead of ‘‘Bulk Rate’’ effective

immediately. The name of the rate

category also is changing from bulk

Bound Printed Matter to presorted

Bound Printed Matter. At the mailer’s

option the ‘‘Presorted’’ marking may be

used instead of ‘‘Bulk Rate’’ effective

immediately. Between now and January

10, 2000, the marking ‘‘Bound Printed

Matter’’ may appear either in the

postage area or in the line above or two

lines above the address on presorted

Bound Printed Matter. Effective January

10, 2000, the ‘‘Bound Printed Matter’’

marking on presorted Bound Printed

Matter must appear in the postage area.

For carrier route Bound Printed

Matter, the need for the ‘‘Bulk Rate’’

marking in addition to the ‘‘Carrier

Route Presort’’ marking will be

eliminated effective January 10, 1999.

Carrier route Bound Printed Matter

mailings must show ‘‘Bound Printed

Matter’’ in the postage area and ‘‘Carrier

Route Presort’’ or ‘‘CAR–RT SORT’’ in

the postage area or in the line above or

two lines above the address. Mailers

will be given until January 10, 2000, to

place the ‘‘Bound Printed Matter’’

marking in the postage area. Effective

January 10, 1999, mailers will be

permitted, but not required, to show the

‘‘Presorted’’ or ‘‘PRSRT’’ (or ‘‘Presorted

Standard’’ or ‘‘PRSRT STD’’) marking on

carrier route Bound Printed Matter in

addition to the required ‘‘Bound Printed

Matter’’ and ‘‘Carrier Route Presort’’ or

‘‘CAR–RT SORT’’ markings.

The ‘‘Catalog’’ or ‘‘Catalog Rate’’

marking will be eliminated for Bound

Printed Matter. Pieces bearing the

‘‘Catalog’’ or ‘‘Catalog Rate’’ markings

will be accepted until January 10, 2000.

(4) Special Standard. For Presorted

Special Standard mail, the ‘‘Presorted’’

portion of the current marking will be

permitted to be abbreviated ‘‘PRSRT’’

and to appear either in the postage area

or in the line above or two lines above

the address. Effective January 10, 2000,

the ‘‘Special Standard’’ marking must be

placed in the postage area.

f. Mail Preparation—OBMC Presort

Discount

To qualify for the Origin Bulk Mail

Center Presort (OBMC Presort) discount,

a mailpiece must be part of a mailing of

at least 50 Parcel Post rate pieces. Pieces

eligible for the OBMC Presort rate must

be entered at a BMC listed in DMM

L601.

Machinable parcels at OBMC Presort

rates must: (1) be sorted to BMCs using

DMM labeling list L601 and, (2) be

prepared in 69-inch pallet boxes placed

on pallets, each labeled to a BMC and

each containing a minimum of 52

inches of mail. OBMC Presort

machinable parcels must not be

prepared as parcels placed directly on

pallets. Overflow containers (pallets,

pallet boxes on pallets, or sacks) are not

permitted.

Nonmachinable parcels at OBMC

Presort rates must: (1) be sorted to BMCs

and ASFs using new DMM labeling list

L605 and, (2) be placed directly on

pallets (no pallet boxes on pallets are

allowed), each labeled to a BMC or ASF

and each pallet containing at least 42

inches of mail. Overflow containers

(pallets, pallet boxes on pallets, or

sacks) are not permitted.

Pallets and pallet boxes also must

meet the provisions of M041. The

minimum height of mail in a pallet box

on a pallet (machinable parcels) or of

mail placed directly on a pallet

(nonmachinable parcels) is measured

from the top of the pallet to the top of

the lowest mailpiece (i.e., excludes the

height of the pallet).
37954 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

g. Mail Preparation—BMC Presort

Discount

To qualify for the BMC Presort

discount, a piece must meet the same

rules for sorting machinable parcels to

BMCs and nonmachinable parcels to

BMCs and ASFs as required for the

OBMC Presort discount above. The

difference is that BMC Presort mail may

be entered at any postal facility (other

than a BMC in DMM L601) that accepts

bulk mailings.

h. Mail Preparation—DSCF Rate

To qualify for the DSCF rate, a piece

must be part of a mailing of at least 50

Parcel Post rate pieces and must be

presorted to 5-digit ZIP Code

destinations. Pieces eligible for the

DSCF rate must be entered at an SCF

listed in DMM L005 and must be for

delivery within the service area of the

entry SCF. For palletized mail only,

certain 5-digit ZIP Codes listed in DMM

Exhibit E652.5.0 must be entered at the

BMC facility serving the SCF.

To qualify for the DSCF rates the

pieces must be presorted and labeled to

5-digit sacks or 5-digit pallets (including

pallet boxes on pallets). Machinable and

nonmachinable parcels may be

combined in the same sack or on the

same pallet (or same pallet box on a

pallet) to meet the minimum sortation

requirements. If sacked, each 5-digit

sack must contain a minimum of 7

pieces, except that one overflow sack

per 5-digit ZIP Code that contains fewer

than 7 pieces is allowed. If palletized,

each 5-digit pallet (including pallet

boxes on pallets) in the mailing must

meet one of the following basic

minimum preparation requirements: (1)

contain at least 50 pieces and 250

pounds of mail, or (2) contain at least 36

inches of mail (height of mail excluding

pallet). Overflow from a full 5-digit

pallet may be placed in 5-digit sacks or

may be palletized. If the overflow is

placed in a 5-digit sack it will be eligible

for the DSCF rates. If the overflow is

placed on a 5-digit pallet it is subject to

the DBMC rates. Pallets prepared under

the piece and pound minimum and

pallets prepared under the minimum

height requirement may both be

combined in a single mailing. Sacked

mail and mail palletized according to

either of the minimum quantity options

listed above also may be included in the

same mailing, provided that at the time

of verification the mailer separates sacks

that are overflow from the palletized

portion of the mailing from sacks that

were prepared under the provisions for

sacking mail.

If mailers can provide certain

documentation, they also may prepare a

mailing exclusively under the following

alternate pallet preparation option. The

minimum number of pieces on a 5-digit

pallet (including a pallet box on a

pallet) may be 35 pieces and 200

pounds provided that within the

mailing the average number of DSCF

pieces per 5-digit pallet is at least 50. To

substantiate that no pallet contains less

than 35 pieces and 200 pounds and that

the average number of DSCF pieces per

5-digit pallet in the mailing is at least 50

pieces, mailers must submit

documentation that lists each pallet in

sequential order by pallet identification

number. For each 5-digit pallet

containing mail claimed at the DSCF

rates the documentation must show: the

unique pallet identification number, the

5-digit ZIP Code of the pallet, the total

weight of pieces on the pallet, the total

number of pieces on the pallet, and the

cumulative total of pieces (i.e., the

number of pieces on that pallet plus the

sum of the pieces on all 5-digit pallets

qualifying for the DSCF rates listed

before it). Under this alternate pallet

option, overflow from a full 5-digit

pallet may be placed in 5-digit sacks or

may be palletized. If the overflow is

placed in a 5-digit sack, it will be

eligible for the DSCF rates. If the

overflow is placed on a 5-digit pallet, it

is subject to the DBMC rates. Mailers

using this 50-piece average-per-pallet

alternative must exclude pieces that are

prepared as overflow under any of the

foregoing methods (sacked or palletized)

from the computation (documentation)

that the 50-piece per pallet average is

met.

For any palletization option, mailers

may place parcels directly on pallets or

in pallet boxes on pallets. If pallet boxes

are used they must not exceed 60 inches

in height and must otherwise meet the

provisions for pallet boxes in DMM

M041. All pallets must meet the

provisions of DMM M041.

Under any palletization option, the

following additional requirements or

restrictions also apply. Currently, many

BMCs transport mail for certain 5-digit

ZIP Code areas directly to the 5-digit

associate post office. A list of these 5-

digit areas is found in DMM Exhibit

E652.5.0. Five-digit pallets prepared for

the DSCF rate for the 5-digit ZIP Codes

listed in this exhibit must be entered at

the BMC, not at the SCF, to qualify for

the DSCF rate. This will avoid

additional handling and transportation

of this mail at the affected SCFs.

However, sacked mail for the 5-digit ZIP

Codes listed in Exhibit E652.5.0 must

always be entered at the SCF (not at the

BMC). There is one exception to this

rule provided for in DMM E652.1.3.

This rule allows a mailer to request from

the Area Manager, Operations Support,

an exception to the requirement to drop

palletized mail for the ZIP Codes in

Exhibit E652.5 at the BMC. Such

exceptions must be requested at least 15

days in advance and may only be

granted for a limited time.

In addition, there are certain associate

post offices that cannot handle pallets.

A list of these facilities is found in the

Drop Shipment Product currently

available from the National Customer

Support Center (NCSC) in Memphis, TN

(1–800–238–3150). For these 5-digit ZIP

Codes, the DSCF rate will be available

only for mail that can be prepared in 5-

digit sacks as described above (i.e., the

DSCF rate will not be available for

palletized mail for 5-digit delivery units

that cannot handle pallets).

In instances where the Drop Shipment

Product shows that mail for a single 5-

digit ZIP Code area is delivered from

more than one facility, the facility listed

in the Drop Shipment Product that

delivers mail to the majority of city

carrier routes will be considered the

delivery unit for parcel post. Two

exhibits, Exhibits E652.6.0 and E652.7.0

that contain exceptions to the ‘‘majority

of city carriers’’ rule, are also added to

the DMM. If a 5-digit ZIP Code is listed

in DMM Exhibit E652.6.0 or E652.7.0,

the facility listed in one of those

exhibits must be used to determine the

name of the delivery unit. The name of

the delivery unit must then be looked

up in the Drop Shipment Product to

determine if mail for it, and therefore

mail for the 5-digit ZIP Code, can be

prepared on pallets to qualify for the

DSCF rate. At some point in the future

the information in these two exhibits

will be incorporated in the Drop

Shipment Product.

Nonmachinable outside (NMO)

parcels by definition cannot be prepared

in sacks because they will not fit in a

sack. Therefore, NMOs must be

prepared directly on pallets or in pallet

boxes on pallets as described above to

qualify for the DSCF rates. If overflow

pallets are prepared, the pieces on such

pallets are subject to the DBMC rates.

The DSCF rate is not available for NMOs

at those facilities listed in the Drop

Shipment Product, and Exhibits

E652.6.0 and E652.7.0, as unable to

handle palletized mail.

The Postal Service will unload

palletized loads for DSCF rate mail.

Mailers must unload sacked and

bedloaded mailings. A provision has

been added to allow mailers to prepare

5-digit sacks qualifying for the DSCF

rate on SCF pallets. Such SCF pallets

have no minimum pallet weight and

may be prepared without having to first

prepare all possible 5-digit pallets. A
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37955

special pallet label is prescribed for this

mail in M045.12.

Except for local mailings,

appointments for dropping any

Standard Mail (B) at an SCF must be

scheduled through the appropriate

district control center (see DMM E652).

i. Mail Preparation—DDU Rate

To qualify for the DDU rate, a piece

must be part of a mailing of at least 50

Parcel Post rate pieces. Pieces eligible

for the DDU rate must be entered at the

postal facility where the carrier who

delivers the parcel is located. A list of

these facilities and their telephone

numbers are in the Drop Shipment

Product currently available from the

National Customer Support Center

(NCSC) in Memphis, TN, 1–800–238–

3150. In instances where the Drop

Shipment Product shows that a 5-digit

area is served by more than one facility,

the facility that delivers mail to the

majority of city carrier routes should be

used for purposes of determining where

to enter a destination delivery unit

mailing. Exceptions to that general rule

are those ZIP Codes listed in DMM

Exhibit E652.6.0 and in Exhibit

E652.7.0. If a ZIP Code appears in DMM

Exhibit E652.6.0 or Exhibit E652.7.0, the

mail must be entered at the delivery

unit listed in the exhibit for that ZIP

Code.

There are no specific sortation

requirements for the DDU rates other

than the requirement that mail must be

separated by 5-digit ZIP Code when

unloaded at a DDU facility. Mailers may

choose to sack or palletize DDU rate

pieces. If so, there are no minimum sack

or pallet requirements but the sack or

pallet must be labeled as a 5-digit sack

or pallet. Mailers may present mail to

the DDU prepared in pallet boxes on

pallets provided the pallet boxes do not

exceed 60 inches in height and

otherwise meet the provisions of M041.

The Drop Shipment Product and DMM

Exhibits E652.6.0 and E652.7.0 may be

used to determine which postal

facilities can handle pallets. If the

facility cannot handle a pallet, and mail

is transported to the facility on pallets,

the mailer must unload the mail from

pallets into a container as specified by

the delivery unit.

The mailer will be responsible for

unloading all DDU loads (even if

palletized). If palletized and the pallets

are stacked, the mailer will be

responsible for unloading, unstacking,

and removing the strapping material

from the pallets. Appointments for entry

must be made by contacting the DDU at

least one day in advance. Mailers

desiring electronic confirmation of DDU

mail entry also must schedule the

appointment through the district control

center. Standing appointments may be

made if shipment frequency is weekly

or more frequently. The grace period for

late arrivals will be 20 minutes.

j. Destination Entry Mail Preparation—

Plant-Verified Drop Shipment (PVDS)

Pieces must be part of a mailing of at

least 50 Parcel Post rate pieces to qualify

for DDU, DSCF, and DBMC rates and to

qualify for OBMC Presort, BMC Presort,

and barcoded discounts. When Parcel

Post rate pieces are submitted under

PVDS procedures, mailers may use the

total of all line items for all destinations

on a PVDS register or PVDS postage

statement to meet the minimum 50-

piece volume requirement. This means

a mailer may enter fewer than 50 pieces

at an individual destination, provided

there is a total of at least 50 Parcel Post

rate pieces for all of the entry points for

that single mailing job listed on the

PVDS register or PVDS postage

statement.

k. Bulk Parcel Post

Bulk Parcel Post is a ‘‘shell’’

classification of Standard Mail (B) for

which there are no separate rates

prescribed. Current DMM E620.2.4e

states that ‘‘the bulk Parcel Post rate is

the rate applicable to each piece in a

bulk Parcel Post rate mailing at the

single-piece rate or DBMC rate for that

zone for an item equal to the average

weight per piece for all parcels in the

mailing to that zone, rounded up to the

next whole pound.’’ This DMM section

therefore establishes a method of

computing postage at Parcel Post rates.

For mailings of identical weight pieces,

this averaging method is irrelevant,

because the average weight of all the

pieces to a zone is always the weight of

a single piece. For mailings of

nonidentical weight pieces, DMM

E620.2.2b states that this method of

postage payment may be used only if

authorized by the rates and

classification service center (RCSC)

serving the post office of mailing. The

Postal Service is removing sections

E620.2.2 and E620.2.4e from the DMM.

Postal Service Headquarters is not aware

of any mailer that is currently

authorized to use this method of postage

payment. If in fact there are mailers

using this method, they may request

that their RCSC issue an authorization

for continuation of their postage

payment procedure as an alternate

mailing system under DMM P730. The

Postal Service is implementing various

new rates and discounts for Parcel Post

that could be considered ‘‘bulk rates’’

because they require a minimum

volume of 50 pieces per mailing.

Therefore, removing references to ‘‘Bulk

Parcel Post’’ rates in DMM E620 will

reduce confusion in the eligibility

section for Parcel Post rates in new

DMM E630. As indicated above, the

Postal Service also will be removing the

requirement to mark pieces with a

‘‘Bulk Parcel Post’’ rate marking. New

DMM E630.6.0 is reserved for any future

rates and requirements for the Bulk

Parcel Post classification.

7. Special Services

a. Address Correction

No changes will be made to address

correction service fees. They will

remain at $0.50 for manual corrections

and $0.20 for automated (ACS)

corrections, per notice issued.

b. Address Changes for Election Boards

No changes will be made to the fee.

It will remain $0.17. See DMM

R900.10.3.

c. Business Reply Mail (BRM)

(1) Fees and Per-Piece Charges. The

annual permit fee will increase from

$85.00 to $100.00, and the annual

accounting fee will increase from

$205.00 to $300.00. For regular BRM,

mailers will pay the applicable FirstClass Mail rates plus a per-piece charge.

The per-piece charge for regular BRM

with an advance deposit account will

decrease from $0.10 to $0.08. The perpiece charge for regular BRM without an

advance deposit account will decrease

from $0.44 to $0.30.

(2) Qualified Business Reply Mail. A

new classification category and rate

structure will be added for qualified

business reply mail (QBRM) that must

be letter-size, automation-compatible,

and barcoded. As a result, the BRMAS

fee category will be eliminated. The

First-Class rate structure for QBRM

includes a lower single-piece first-ounce

rate of postage of $0.30 for letters and

$0.18 for cards. The fee structure

requires an annual BRM permit fee, an

annual BRM accounting fee, and for

each piece returned a $0.05 per-piece

BRM charge.

(3) Mailpiece Design and Barcoding

Requirements. Mailpiece design and

barcoding requirements will be revised

for both regular BRM and QBRM.

Regular BRM pieces that bear a barcode

and QBRM pieces that bear a barcode

will be required to meet the automation

letter mailpiece design requirements in

DMM C810 (except C810.7.1) and the

barcoding standards in C840 so that

there are uniform requirements for all

mail that is processed on barcode

sorters.

For barcoded and nonbarcoded BRM,

references to mailpiece design
37956 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

requirements in DMM C810 and C830

will replace current BRM standards

relative to reflectance requirements,

paper weight, tabs and self-mailers. This

will add basis weight, tabbing, and other

requirements for all self-mailers. It is

likely that self-mailers will be processed

on automated equipment. Meeting these

requirements will ensure their ability to

be processed without damage. QBRM

and other barcoded mailpieces must

meet all the mailpiece design

requirements in C810 except the

requirement in C810.7.1. The basis

weight requirement for envelopes in

C810.7.1 will not apply to BRM. BRM

envelopes, including QBRM, must

continue to meet the current minimum

paper basis weight of 20 pounds

(measured using 500 sheets of 17- by 22-

inch paper). In addition, the standard in

current S922.6.4 that envelope material

must not have a phosphorescence

exceeding 4.0 phosphor meter units is

retained and corrected to state that

envelope material must not have a red

fluorescence exceeding 4.0 phosphor

meter units. Mailers will have until

January 10, 2001, to comply with the

requirement in DMM C810.2.1c that

Qualified Business Reply Mail pieces

and other BRM pieces that bear a

barcode and measure more than 41⁄4

inches by 6 inches meet a minimum

thickness requirement of .009 inch.

Mailers currently have the option of

preparing pieces with lower right

barcodes according to the standards in

C840. They also currently have the

option of preparing the pieces so that

the left boundary of the barcode clear

zone and of a lower right barcode

window is 1⁄4 inch closer to the right

edge of the mailpiece than required

under C840, and to place the leftmost

bar of a lower right barcode 1⁄4 inch

closer to the right edge of the mailpiece

than required under C840. The revised

standards will no longer permit mailers

to use the option that does not meet the

DMM C840 requirements. However,

mailers will be given until January 10,

2001, to use existing stocks of such

prebarcoded BRM envelopes and cards

that: (1) Have a barcode clear zone with

a left boundary that is 41⁄2 inches from

the right edge of the piece (not 43⁄4

inches as required in C840); (2) have a

lower right barcode for which the

leftmost bar is located between 31⁄4 and

4 inches from the right edge of the piece

(not between 31⁄2 and 41⁄4 inches as

required under C840); (3) have a lower

right barcode window, that has a left

boundary measuring 41⁄2 inches from

the right edge of the piece (not 43⁄4

inches as required under C840).

The revised standards also will allow

a company logo to appear beneath the

delivery address line of a prebarcoded

BRM or QBRM mailpiece, provided the

logo is placed no lower than 5⁄8 inch

from the bottom edge of the mailpiece

and does not interfere with the barcode

clear zone.

d. Carrier Sequencing of Address Cards

The fee will increase from $0.17 to

$0.20. See DMM R900.1.0.

e. Certificate of Mailing

The fees will increase. See DMM

R900.4.0.

f. Certified Mail

The fee will increase from $1.35 to

$1.40. See DMM R900.5.0.

g. Collect on Delivery (COD)

COD fees will increase. See DMM

R900.6.0. The standards in DMM S921

will also be revised to remove references

to the availability of COD with singlepiece Standard Mail (A).

h. Correction of Mailing Lists

The per-correction fee will be

increased from $0.17 to $0.20 and the

minimum per-list fee is increased from

$5.50 to $7.00. See DMM R900.10.1.

i. Delivery Confirmation

A new delivery confirmation service

will be available for Priority Mail and

Standard Mail (B) in early 1999. This

service, when available, will provide the

mailer with information about the date

of delivery or attempted delivery. This

service will be available in two forms:

(1) an electronic option for mailers who

apply identifying barcodes to each

piece, provide an electronic manifest,

and retrieve confirmation information

electronically; and (2) a retail (manual)

option for which delivery information

will be available through a USPS

Internet address or a toll-free number.

Signature (electronic return receipt)

service also will be available in early

1999.

j. Express Mail Insurance

The fees for merchandise insured for

$500.01 to $5,000.00 will increase. See

DMM R900.8.0.

k. Insured Mail

The fees for insurance service will

increase. See DMM R900.9.0. The DMM

provisions in S913 will be revised to

delete the applicability of insurance to

single-piece Standard Mail (A). Since

single-piece Standard Mail (A) will be

eliminated, mail that was formerly

mailed at those rates will be subject to

single-piece First-Class Mail or Priority

Mail rates as applicable for the weight

of the mailpiece. Because First-Class

Mail and Priority Mail may be insured,

mailpieces formerly mailed at singlepiece Standard Mail (A) rates will retain

their eligibility for insurance when

mailed at First-Class Mail or Priority

Mail rates.

In addition, a bulk insurance service

discount of $0.40 per piece is

introduced. To be eligible for the bulk

insurance service discount, mailers

must (1) enter mailings of insured

articles under an approved manifest

mailing system agreement, (2) mail a

minimum of 10,000 insured articles

annually (a total of all insured articles

mailed at multiple locations), (3)

provide a hard copy of Form 3877, Firm

Mailing Book for Accountable Mail, or

facsimile and (4) provide a copy of Form

3877 on a diskette or other electronic

medium. Mailers must submit an

application for bulk insurance to their

local postmaster or designee. The local

postmaster or designee will approve or

deny the application. Authorized

mailers will be provided instructions for

filing claims under the bulk insurance

service by the local postmaster or

designee. When systems that

electronically capture information on

accountable mail are completed and

programming changes that will tie the

St. Louis ASC into these systems are

completed, mailers will be required to

file claims electronically using a new

(soft) electronic format for the Form

3877. When or before these changes and

systems are completed, bulk insurance

mailers will be provided with

instructions for a new format for the

electronic Form 3877 and with

instructions for electronically filing

claims.

l. Merchandise Return Service

The annual permit fee will increase

from $85.00 to $100.00. The charge per

returned mailpiece remains at $0.30.

Revisions are made to the postage that

is applicable to pieces returned that

weigh less than 16 ounces and to the

marking requirements that specify the

return rate of postage. These changes

will be necessary because of the

elimination of single-piece Standard

Mail (A) rates. Matter bearing a

merchandise return label without a

preprinted rate marking will be returned

at: (1) the Parcel Post rate if it weighs

16 ounces or more, (2) the Priority Mail

rates if it weighs over 13 ounces but less

than 16 ounces, and (3) the First-Class

Mail rates if it weighs 13 ounces or less.

If the permit holder desires matter to be

returned the Special Standard, or

Library Mail rates, the permit holder

will be required to preprint the

appropriate rate marking on the label. If

the permit holder desires matter
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37957

weighing 13 ounces or less or matter

weighing 16 ounces or more to be

mailed at the Priority Mail rates, the

mailer will be required to preprint the

Priority Mail marking on the

merchandise return label. It is

recommended but not required that

matter to be returned at the First-Class

Mail, Priority Mail, or Parcel Post rates

bear the applicable preprinted marking

‘‘First-Class’’ or ‘‘First-Class Mail,’’

‘‘Priority Mail,’’ or ‘‘Parcel Post’’ (or

‘‘PP’’).

m. Money Orders

The fee for domestic money orders

will be reduced from $0.85 to $0.80. The

fee for a postal military money order

will remain at $0.30 and the inquiry fee

will remain at $2.75.

n. On-Site Meter Settings

There will be increases to two of the

on-site meter setting fees. The fee for an

additional meter setting will increase

from $3.25 to $4.00, and the fee for

checking a meter in and out of service

will increase from $7.50 to $8.50. No

increases will be made to the scheduled

appointment setting fee for the first

meter ($27.00) or to the unscheduled or

emergency setting fee for the first meter

($31.00).

o. Parcel Airlift

There will be no changes to parcel

airlift fees ($0.40 for up to two pounds,

$0.75 for over two up to three pounds,

$1.15 for over three up to four pounds,

and $1.55 for over four pounds).

p. Permit Imprint

The application fee for permit

imprints will increase from $85.00 to

$100.00.

q. Post Office Boxes, Caller Service, and

Reserve Call Numbers

Post office box fees (except the $0 fee

for all box sizes in Group E) will

increase. Fees for caller service and

reserve call numbers also will increase

(see R900.3.0 and DMM R900.16.0).

r. Registered Mail

The maximum value level for

registered mail without postal insurance

will be decreased from $100.00 to $0.00.

All registered mail with a value of $0.01

or more will be automatically provided

with insurance (up to a maximum

indemnity of $25,000 per piece).

Insurance coverage is included in the

applicable registered mail fee. Only mail

of no value may be mailed as uninsured

registered mail. In addition, registered

mail fees will increase (see DMM

R900.18.0).

s. Restricted Delivery

The restricted delivery fee will not

change (it remains $2.75).

t. Return Receipt

Fees for return receipt will increase

from $1.10 to $1.25 when requested at

time of delivery and from $6.60 to $7.00

when requested after mailing.

u. Return Receipt for Merchandise

The fee for return receipt for

merchandise will increase from $1.20 to

$1.40, and the fee for a delivery record

will increase from $6.60 to $7.00. DMM

S917 will be revised to delete the

availability of this service with singlepiece Standard Mail (A), because singlepiece Standard Mail (A) will be

eliminated.

v. Special Handling

There will be no change to the fees for

special handling ($5.40 for matter

weighing not more than 10 pounds and

$7.50 for matter weighing more than 10

pounds). In addition, DMM S930.1 will

be revised to conform to the Domestic

Mail Classification Schedule (DMCS) by

making it clear that special handling

may be used with First-Class Mail and

Priority Mail.

w. Stamped Cards

A $0.01 fee per stamped card and a

$0.02 fee per double stamped card will

be added to cover manufacturing and

printing costs. A fee of $0.40 will be

added to the price of a sheet of 40

stamped cards. This is consistent with

the existing fee structure for stamped

envelopes, where customers are charged

postage plus a small fee for the envelope

itself.

x. Stamped Envelopes

The fees for some stamped envelopes

will increase and others will decrease.

In addition, the fee structure will be

simplified: except for hologram stamped

envelopes, all stamped envelopes will

be grouped together by size and whether

they are plain or printed.

y. ZIP Coding of Mailing Lists

Fees will increase from $60.00 to

$70.00 per 1,000 addresses or fraction

thereof.

C. Summary of Comments From the

March 16, 1998, Proposed Rule

The Postal Service received 32 pieces

of correspondence offering comments

on the March 16, 1998, proposed rule.

Respondents included five major mailer

associations; 24 publishers, printers,

and mailers; and three individuals.

The specific points raised in the

comments are presented below,

organized by general comments and

then by class of mail and special

service.

1. General Comments

Three comments were received

concerning the implementation date of

the new rates, fees, and classifications.

Each commenter indicated that the

implementation date should allow time

for mailers to make software changes.

Suggested dates ranged from 90 days to

8 months after the Board of Governors’

decision. The implementation date for

Docket No. R97–1 is determined by the

Board of Governors of the Postal Service

and is outside the scope of this

rulemaking process. Postal management

did however, consider these comments

when it provided advice to the Board of

Governors concerning the effective

dates.

Various comments also were received

that requested changes to rates and fees.

One commenter requested that the

revised rates not apply to his company

for two to five years. These comments

are beyond the scope of this rulemaking.

The rates, rate structure, and basic

standards for rates in Docket No. R97–

1 were subject to litigation before the

Postal Rate Commission and cannot be

revised unilaterally by the Postal

Service in a rulemaking process.

Three commenters requested that a

single item not be subject to both a

hazardous medical materials and an

other hazardous materials surcharge. As

the PRC did not recommend the

proposed hazardous materials

surcharges, these comments will not be

addressed.

One commenter indicated that the

Postal Service should re-solicit

comments for any items that were

affected by the PRC decision. Because

the Postal Service cannot revise rates

and DMCS language that is

recommended by the PRC and approved

by the Governors of the Postal Service,

it does not believe that soliciting

comments on such items would have

any value.

2. Priority Mail

One commenter requested

clarification as to whether Priority Mail

must always bear the ‘‘Priority Mail’’

marking. This commenter further asked

whether the ‘‘Priority Mail’’ marking

will delay the mail when deposited in

an overnight First-Class Mail area and,

if so, could such mail pieces be marked

‘‘First-Class’’ instead of ‘‘Priority Mail.’’

Priority Mail must always bear the

marking ‘‘Priority Mail’’ or ‘‘Priority.’’

This marking is used to ensure that mail

is placed in and processed through the

Priority Mail network and to collect cost
37958 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

and revenue data through the Postal

Service’s statistical sampling systems.

Deployment of the Priority Mail

Processing Center (PMPC) network has

affected overnight service standards for

some ZIP Codes. While the vast majority

of service standard changes have

resulted in improved service, there are,

as the commenter suggests, a small

number of 5-digit ZIP Code areas that

may experience two-day service instead

of overnight. However, the Postal

Service does not plan to waive the

marking requirement for pieces mailed

in such 5-digit ZIP Code areas.

3. First-Class Mail

Two commenters requested that the

Prepaid Reply Mail proposal should not

be implemented because of

administrative complexity and costs to

the mailer. For other reasons, the

Governors did not approve Prepaid

Reply Mail.

One commenter supported the

provision allowing ‘‘Presorted’’ to be

abbreviated ‘‘PRSRT’’ when used in the

‘‘Presorted First-Class’’ marking.

Another commenter was concerned that

it appeared the revised DMM M012.2.1a

required single-piece First-Class Mail to

bear a ‘‘First-Class’’ marking. The Postal

Service has revised DMM M012 to make

it clear that single-piece First-Class Mail

is not required to bear a rate marking.

4. Periodicals

Two commenters suggested that for

clarity, proposed DMM E230.3.0b and

E230.4.0b concerning eligibility for 5-

digit and 3-digit presort rates be revised

to indicate that 5-digit and 3-digit

packages of 6 or more pieces may be

palletized under M045 to obtain the 5-

digit and 3-digit presort rates. The

Postal Service has adopted this

suggestion.

Two commenters suggested that the

forwarding rules table in DMM

F010.5.2g should be clarified so it does

not appear that use of ACS will always

result in the return of the mailpiece.

One of these commenters suggested that

it would be clearer if the entire chart in

this DMM section had been reproduced

so that it was clear that footnote 1

stating ‘‘Valid for all pieces, including

Address Change Service (ACS)

participating pieces’’ also applied to

pieces that bear no endorsement. When

Periodicals pieces bear no endorsement,

after 60 days or, if the piece is

undeliverable, a separate address

correction or reason for nondelivery is

provided, the address correction fee is

charged (the automated fee if ACS

service is used), and the piece is

disposed of by the Postal Service. The

entire chart in DMM F010.5.2g is

reproduced in this final rule to make it

clear that this policy has not changed.

One commenter indicated that it

appeared the Postal Service intends to

revise current rules in DMM F010.6.1 to

require that Periodicals mail with a

nonincidental First-Class attachment be

returned to the mailer. The Postal

Service revisions to DMM F010.6.1 in

both the proposed and this final rule

revise only the rate of postage at which

such pieces are returned from the

single-piece Standard Mail (A) rate to

the First-Class or Priority Mail rate as

applicable for the weight of the piece.

Postal Service policy for some years has

provided that Periodicals pieces with

nonincidental First-Class Mail

attachments be returned. However,

Periodicals pieces with incidental FirstClass Mail attachments, as defined in

DMM M070.5.0, are treated as dead mail

unless endorsed ‘‘Address Service

Requested.’’ To avoid confusion, in Part

D of this final rule, the Postal Service

has published DMM F010.6.1 in its

entirety to show the treatment of

incidental First-Class attachments as

well as treatment of nonincidental FirstClass attachments.

One commenter indicated that the

current interpretation of ‘‘mailing’’ for

Periodicals allows mailers to treat and

report mail for different rate categories,

including automation mail, carrier route

mail, and other non-automation mail, as

one ‘‘mailing.’’ This commenter asked if

the proposed definition of a mailing in

DMM M011.1.4 would require that a

separate mailing statement be prepared

for each rate category of Periodicals

mail. The DMM currently does not

allow preparation of automation, carrier

route, and other non-automation mail in

a single ‘‘mailing.’’ Separate presort and

eligibility requirements are prescribed

for each of these rate categories.

However, each of these rate categories

are permitted to be reported on a single

postage statement for a single

publication and edition. To clarify that

the current practice continues to be

permitted, a new section DMM

M011.1.4d has been added concerning

‘‘mailings’’ of Periodicals.

5. Standard Mail (A)

Five commenters indicated their

support for allowing pieces in an

Enhanced Carrier Route rate mailing

and/or in an automation rate mailing

that have each separately met a 200-

piece or 50-pound minimum quantity

requirement to be counted toward the

minimum quantity requirement for a

Presorted Standard (3⁄5 and basic rate)

mailing, provided that (1) the Enhanced

Carrier Route rate mailing and/or the

automation mailing and the Presorted

Standard mailing are part of the same

mailing job, and (2) the mailings are all

reported on the same postage statement.

One commenter asked what DMM

section E612.4.6 means. DMM E612.4.6

contains provisions that allow Standard

Mail (A) matter weighing less than 16

ounces to pay Standard Mail (B) rates if

those rates are lower than Standard Mail

(A) rates and the matter and the mailing

could qualify for the Standard Mail (B)

rate except for weight. For example,

suppose a mailer had flat-size printed

matter pieces that met all of the

qualifications for Bound Printed Matter

except that the pieces each weighed 4

ounces and therefore did not meet the

requirement of weighing at least one

pound. In such an instance the mailer

could presort the pieces as Standard

Mail (A) flats and claim basic presorted

Bound Printed Matter rates if those rates

were less than the applicable Standard

Mail (A) rates. The mailer could presort

the pieces according to the Presorted

Standard Mail (A) requirements to 5-

digit, 3-digit, ADC, and mixed ADC,

which are similar to the presort

requirements for presorted Bound

Printed Matter, and claim the local zone

Bound Printed Matter rates provided the

mailer marked the pieces ‘‘Presorted’’ or

‘‘Presorted Standard’’ and ‘‘Bound

Printed Matter’’ and submitted

documentation to substantiate that the

pieces qualified for the local zone rate.

One commenter requested that the

Postal Service not apply the residual

shape surcharge to Enhanced Carrier

Route rate merchandise samples

prepared with detached labels. The

Postal Rate Commission recommended

and the Governors of the Postal Service

approved a residual shape surcharge for

Enhanced Carrier Route mail. Since

these provisions are in the Domestic

Mail Classification Schedule to take

effect January 10, 1999, the Postal

Service cannot unilaterally change these

provisions. Therefore, merchandise

samples at the Enhanced Carrier Route

rates will be subject to the residual

shape surcharge.

One commenter requested that the

Postal Service revise the rule placed

into effect under Classification Reform

that allows mail whose size meets both

the letter-size requirements and the

automation flats requirements to be

prepared as flats on pallets if a portion

of the mailing qualifies for automation

flats and if palletized mail at the

Presorted Standard rates is limited to

10% of the total palletized mail. This

rule further requires that mail unable to

be palletized either due to density or

because it exceeded the 10% limit be

prepared as a separate letter-size

mailing. This issue is not related to the
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37959

implementation rules for the Docket No.

R97–1 rate case and will not be revised

as a part of this rulemaking process.

However, this matter has been brought

to the attention of the Presort

Optimization working group of the

Mailers Technical Advisory Committee.

One commenter indicated that on

occasion he will have a mailing that is

set up as Standard Mail (A) (i.e., bears

Standard Mail (A) rate markings and

pre-printed endorsements for Change

Service Requested using ACS) and

subsequently discover that a particular

mailing list has fewer than 200 names.

Such a mailing would not qualify for

Standard Mail (A) rates, and would be

subject to single-piece First-Class Mail

rates, unless it could meet the revised

volume requirements under DMM

E620.1.2. This commenter indicated that

he could cover the bulk rate indicias

with First-Class stamps, but that the

ACS participant code on the mailpieces

would be that assigned for Standard

Mail (A), not First-Class. This

commenter accordingly asked if changes

could be made to the Centralized

Forwarding System (CFS) to handle this,

and if not, asked how could it be

mailed. The CFS system cannot be

modified to handle such instances. It

would be unlikely that a postal

employee would be able to tell that such

a mailpiece was modified from a

Standard Mail (A) mailpiece if a stamp

is covering the bulk rate indicia.

Furthermore, if mailers added ‘‘singlepiece’’ or ‘‘single-piece First-Class’’

markings to such mailpieces it would be

difficult and time consuming to have

carriers search all undeliverable

mailpieces for such markings in order to

forward them to CFS sites, and then for

CFS employees to notice the markings

and respond accordingly. Two options

have been added to the DMM for

payment at First-Class or Priority Mail

rates for such pieces and for pieces that

for other reasons are subject to the

appropriate First-Class Mail or Priority

Mail rates. Mailers who desire to receive

First-Class Mail or Priority Mail service

on mailpieces subject to those rates

must re-envelope or otherwise prepare

the mailpieces so that they bear only the

proper First-Class Mail or Priority Mail

rate markings, ancillary service

endorsements, Address Change Service

(ACS) codes, etc. Metered pieces

weighing over 13 ounces and less than

16 ounces must always be prepared

under this method. Except for metered

pieces weighing over 13 ounces and less

than 16 ounces, mailers who do not

desire to receive First-Class Mail or

Priority Mail service on such pieces may

submit them ‘‘as is’’ (i.e., bearing the

Standard Mail (A) markings and

endorsements). No additional markings

or postage are to be added to these

pieces. First-Class Mail or Priority Mail

postage must be paid for these pieces

using the appropriate First-Class or

Priority Mail postage statement. Except

for metered pieces weighing over 13

ounces and less than 16 ounces, mail

bearing metered or precanceled stamp

postage must pay the difference between

the postage affixed and the First-Class

Mail or Priority Mail rates by means of

an advance deposit account or by

affixing a meter strip for the appropriate

amount to the First-Class postage

statement. If the pieces weigh 13 ounces

or less, mailers must use special line

items on the new First-Class postage

statements under the heading ‘‘From

Standard Mail (A)’’ to record the pieces

mailed. This option may be used for

fewer than 200 pieces of permit imprint

mail only if the pieces were part of a

larger mailing job and are submitted for

acceptance along with the mail and a

Standard Mail (A) postage statement for

the other pieces in the same mailing job.

One commenter was concerned that

the revised definition of a mailing in

DMM M011.1.4d(6) seemed to preclude

his company’s current practice of comailing Nonprofit and Regular rate mail.

This section has been renumbered as

M011.1.4e(6) in this final rule. This

section begins with the phrase ‘‘Except

as provided by standard,’’ which means

that other rules in the DMM may permit

practices that entail combining or

copalletizing such pieces. For clarity the

following sentence was added to this

section in the final rule. ‘‘See M041.6.0,

M045.5.0, M045.7.0, and M200.6.0 for

copalletized, combined, or mixed-rate

level mailings.’’ Accordingly, if a mailer

is currently authorized to combine or

copalletize Nonprofit and Regular rate

mail, he or she may continue to do so

after the new rates and mailing

definitions are effective.

Two commenters supported the

change in the Standard Mail (A) rate

marking for Regular rate mailings from

‘‘Bulk Rate’’ to ‘‘Presorted Standard.’’

Two commenters indicated that the

‘‘Presorted Standard’’ marking should

be optional. These two commenters

indicated that they would prefer to use

the new marking on their advertising

mail but do not wish to use it on

fulfillment parcels because it will be

costly to revise the current cartons. One

of these commenters indicated that if

the marking is not made optional, there

should be a transition period of at least

two years for mailers to convert to the

new marking. For simplicity in its

statistical sampling systems, the Postal

Service will not allow both markings to

be used indefinitely. However, mailers

will be given two years to convert their

regular rate Presorted, regular rate

automation, and regular rate Enhanced

Carrier Route mailings to the new

‘‘Presorted Standard’’ marking or its

authorized abbreviation ‘‘PRSRT STD.’’

Until January 10, 2001, either the ‘‘Bulk

Rate’’ or the ‘‘Presorted Standard’’

marking or authorized abbreviation will

be accepted.

Five commenters requested that the

proposed ‘‘RSS’’ marking for pieces

subject to the residual shape surcharge

be eliminated. Four of these

commenters indicated the marking uses

too much space on a mailpiece, one

indicated that it detracts visually from

the mailpiece, two did not see the

purpose of it, and one indicated it

would require additional labor for the

shipper. One commenter was a mailer

association, who indicated it would be

impossible for some of its mailers to

predict which pieces would need the

marking. One such mailer has pieces

that could be considered either flat-size

or a machinable parcel and decides

which way to prepare the mail based on

the density of orders received. Only

machinable parcel mailings would need

to bear the marking. Another such

mailer indicated they cannot predict the

final size of the product shipped ahead

of time. For example, multiple pieces

ordered could be sent as one or more

pieces each having a different shape.

Based on the comments received, the

Postal Service has determined to not

require the use of an ‘‘RSS’’ marking.

6. Standard Mail (B)

a. General

There were 10 commenters among the

32 submitting comments to the Postal

Service whose statements concerned

Standard Mail B topics. Of the 10, seven

were private firms, including three

parcel consolidators, and three were

parcel shipper associations. Their

comments concentrated mainly on the

following subject areas: barcoded

discount, destination mailings at the

sectional center and delivery unit levels;

new bulk mail center presort (BMC

Presort) and origin bulk mail center

presort (OBMC Presort) discounts; 10%

limitation on oversized parcels; criteria

for machinability and nonmachinability;

combined mailings of Standard Mail (A)

and Standard Mail (B) parcels; and

vehicle unloading requirements.

In addition to receiving comments as

part of the formal rulemaking process,

the Postal Service has had extensive

ongoing exchanges of viewpoints with

representatives of the parcel shipping

industry. This cooperative effort has led
37960 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

to the development of revised standards

that the Postal Service believes strikes a

better balance between the interests of

mailers and their concerns about

qualifying for the most advantageous

postage rate discounts at the lowest

possible mailing costs and the needs of

the Postal Service for providing highquality service, containing costs, and

optimizing operational efficiency.

Significant revisions have been made in

the proposed standards, especially as

they relate to mail preparation

requirements for the new destination

sectional center and delivery unit

discount rates.

Several other issues unrelated to the

R97–1 rate case emerged and are not

addressed in the final standard. These

issues concern extension of the

destination bulk mail center rates

(DBMC) to Alaska, Hawaii, and Puerto

Rico, new criteria for parcel

machinability or nonmachinability, and

updated definitions of ‘‘perishable’’ and

‘‘nonperishable’’ parcels that take into

account improved packaging and

containerization. They will be reviewed

separately by the Postal Service in the

future and any changes to existing

standards will be handled through

separate rulemaking procedures.

b. Parcel Barcodes

Two commenters indicated that they

would support a barcode certification

process, and that this process should be

published at least 60 days prior to rate

availability. In lieu of a barcode

certification process, the Postal Service

is looking at methods to verify the

quality of barcodes during the

verification process using commercially

available barcode verification

equipment.

One commenter indicated that the

barcoded discount should be available

for pieces processed at any postal

facility that is automated to use the ZIP

Code barcode for sorting, including

ASFs that now or in the future have

barcode scanning capabilities. The

Postal Service has determined that the

Phoenix, Arizona, ASF has barcode

scanning capabilities. Accordingly, the

Postal Service has revised the standards

for eligibility for the barcoded discount

for Parcel Post mail to include

machinable parcels eligible for the

DBMC rate that are entered at the

Phoenix ASF.

One commenter raised a question

about the need for having humanreadable characters representing the 5-

digit barcode appear on a mailpiece’s

address label since it duplicates

information already provided in the

address and takes up limited label

space. Having the human-readable ZIP

Code appear as part of the barcode

printing process immediately below the

barcode is useful in determining that the

correct barcode was applied to the

mailpiece, particularly if the barcode is

applied in a process separate from

applying the address. Since generally

the ZIP Code in the address block is

used in the process of applying an

address block barcode, the Postal

Service has decided to revise the

standard. Therefore, the numeric

equivalent of the barcode will not be

required to appear immediately below

the barcode when the barcode is printed

as part of the address block (on the same

label as the mailing address and in close

proximity to that address). However, if

the barcode label is produced separately

from the address label, the human

readable ZIP Code information must be

included. This decision will give

mailers some flexibility in how they

prepare their address labels while still

meeting postal concerns about having

barcodes that are correct for the

addresses on the parcels.

Another commenter raised several

questions about the technical

specifications included in the proposed

rule. Clarification was requested for the

average measured narrow element (bar

or space) width. The average measured

narrow element is the barcode Xdimension that typifies the arithmetic

mean of the barcode narrow elements. A

minimum clear or quiet zone equal to 10

times the average measured narrow

element (bar or space) width must be

maintained on either side of a barcode

as defined in ANSI X3.182–1990.

A second question was whether

mailers and their suppliers would have

to start measuring barcode spaces and

bar widths more scientifically to

determine what dimension is

appropriate for the clear space

surrounding parcel barcodes on either

side. The Postal Service is confident

that mailers will be able to determine

the average narrow element widths and

barcode quality by using commercially

available barcode verification

equipment.

A related question had to do with

how the Postal Service would

administer this specification. The Postal

Service is looking at methods to verify

the quality of barcodes during

verification by using commercially

available barcode verifiers to measure

barcode parameters.

Another question concerned the basis

for requiring a minimum clear zone

equal to 10 times the average measured

narrow element (bar or space) width on

either side of the barcode. The

advantage to the Postal Service for using

a minimum clear zone of 10 times the

average narrow element width is to

ensure the reliable reading of barcodes

on currently deployed postal

equipment. The quiet zone specification

for the barcode symbologies in question

is defined in the AIM/USS symbol

specification. Additionally,

manufacturers of barcode readers advise

that a minimum clear zone of 10 times

the average narrow element width

enhances barcode readability.

This commenter also asked why the 1⁄8-inch dimension could not be used.

The reason is that 1⁄8 inch is less than

10 times the average narrow element

width for the minimally defined narrow

element width of 13 mils, and,

therefore, not in compliance with the

AIM/USS symbology specification and

the ANSI print code quality guidelines

(ANSI X3.182–1990). Another question

from this same commenter concerned

whether the proposed measurement

would allow greater room for shifting of

the piece under the barcode reader on

the parcel sorter machines. The

proposed clear zone specification is the

minimum acceptable standard as

provided in the ANSI print code quality

guidelines of ANSI X3.182–1990.

c. Oversized Parcels

The Postal Service had included in

the proposed rule provisions for mailing

oversized parcels (parcels exceeding 108

inches but not more than 130 inches in

combined length and girth) at the rates

equal to a 70-pound parcel for the

applicable zone provided they

constituted no more than 10% of the

total pieces in a mailing. Two

commenters questioned the 10% limit.

The PRC’s recommended decision

included zoned rates for such oversized

pieces that are higher than the 70-pound

rates. The PRC did not recommend a

10% limit on such pieces but

recommended higher rates. Since the

Governors of the Postal Service

approved this provision of the PRC’s

recommended decision, the final DMM

standards do not include a 10% limit on

such oversized pieces.

d. DSCF Rate Mailings

Nine of the 10 Standard Mail (B)

commenters had comments about the

proposed standards for destination

sectional center facility (DSCF) and

delivery unit (DDU) rate mailings. Three

parcel consolidation shipping

companies submitted comments

favoring more flexible, less restrictive

requirements. In general, the comments

favored lower minimum volumes for

rate eligibility than those proposed by

the Postal Service, optional entry points,

and greater flexibility in the preparation

requirements so mailers could choose to
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37961

prepare pieces directly on pallets, in

pallet boxes on pallets, or in sacks.

One commenter proposed that the

Postal Service eliminate the use of sacks

for the DSCF rate. This commenter

believed that eliminating sacks as an

option would avoid additional

handlings of sacks at postal facilities.

This commenter also indicated that very

few parcel mailers would be able to

place 10 parcels in a single sack and

that this minimum could effectively

eliminate sacked mail. Five other

commenters also thought the proposed

sack minimum of 10 pieces was too high

and said it would discourage DSCF

mailings. While several commenters

proposed adopting minimums that

would utilize sack volume and weight

factors, these factors are not included as

part of the costing determinations for

the rate. The critical cost determinant

for the rate is the number of pieces per

handling. In the final DMM standards

the minimum number of pieces per sack

has been reduced from 10 to seven. The

decision to reduce the minimum to

seven pieces is being made with the

expectation that an average of 10 pieces

per sack will be achieved to support the

worksharing discount. In addition, the

final DMM standards allow for one

overflow sack per 5-digit destination

that may contain fewer than seven

pieces.

Six commenters sought to eliminate

the provision prohibiting overflow

pallets. One commenter said that since

overflow trays of letters are permitted,

overflow pallets of parcels also should

be allowed. This argument is not

persuasive because the cost of handling

a pallet is much greater than the cost of

handling a tray. It costs as much to

handle a less-than-full pallet as it does

a full one. However, the standard has

been modified in this final rule to

accommodate overflow from pallets.

Provisions have been added to the DMM

standards that allow overflow from 5-

digit pallets to be placed in 5-digit

sacks. Overflow sacks will have no

minimum piece requirement and the

pieces in overflow sacks will be eligible

for the DSCF rates. The Postal Service

also has added provisions that will

allow a mailer to present to a DSCF

overflow 5-digit pallets (that by

definition do not meet the pallet

minimums for the DSCF rate) provided

the DBMC rates are paid for the pieces

on such overflow pallets.

Five commenters expressed concern

over the 5-digit pallet minimums

specified in the proposed rule. In setting

the minimum specified in the proposed

rule, the Postal Service was guided by

per-piece handling costs and concerns

that a reduction in the average number

of pieces per handling resulting in

higher costs, would adversely affect the

viability of the rate. Small volume

pallets would increase handling costs

and also would take more cube space on

transportation. While suggesting

differing alternatives to the Postal

Service proposal, these five commenters

were in agreement that the requirement

of a minimum of 50 pieces and 250

pounds per pallet was too high. To

resolve their concerns and those of the

Postal Service about piece handling and

transportation costs, the Postal Service

has added a new option for preparing 5-

digit pallets to qualify for the DSCF rate.

Under the new option, pallets may be

prepared that contain as few as 35

pieces and 200 pounds of mail provided

the total number of pallets prepared for

the DSCF rate in the mailing average at

least 50 pieces per pallet. Under this

new option, no other pallet preparation

or sack option may be used within a

single mailing. Mailers will be required

to submit detailed documentation and

place sequential identification numbers

on qualifying pallets of DSCF rate mail.

The documentation must list each pallet

in sequential order by pallet

identification number. The listing must

show for each pallet: the pallet

identification number, the 5-digit ZIP

Code of the pallet, the total weight of

pieces on the pallet, the total number of

pieces on the pallet, and the cumulative

total of pieces (i.e., the number equal to

the number of pieces for that pallet plus

the sum of the pieces on all pallets

listed above it). This documentation

must not include pieces prepared in

overflow sacks at the DSCF rate, pieces

prepared on overflow pallets at the

DBMC rates, or pieces claimed at any

other rate in the mailing.

The requirement for BMC entry of

DSCF rate mailings prepared on pallets

to ZIP Codes listed in Exhibit E652.5.0

has been retained. The BMC provides

direct transportation to the 5-digit

facilities represented by the listed 5-

digit ZIP Codes, thereby allowing

certain quantities of mail to bypass the

affected SCFs. The Postal Service

believes that there is a need for

palletized mail for the 5-digit ZIP Codes

listed on Exhibit E652.5.0 to continue to

bypass the affected SCFs because of the

potentially limited capabilities of those

SCF facilities. Three commenters said

that they would like to have an option

to enter DSCF rate mailings either at a

BMC or an SCF. To support this

position, one commenter contended that

the same dock procedures for handling

5-digit containers are followed at the

SCF as are followed at the BMC and that

the distance from the SCF to a 5-digit

facility would be less than from the

BMC. The Postal Service disagrees.

BMCs do not currently sort sacks to 5-

digits or cross-dock 5-digit sacks. They

are shipped to the SCF in 3-digit

containers and are re-worked to 5-digits

at the SCF, thus adding handlings.

Further, granting an option on a blanket

basis is likely to worsen the problems

experienced by some sectional center

facilities in accommodating palletized

mailings due to limited dock space,

restricted vehicle maneuvering area, and

other constraints. Recognizing that

requiring BMC entry may present

certain difficulties for mailers, the

Postal Service has amended the

proposed standard to allow exceptions

on a case by case basis. A mailer may

submit a written request to the

appropriate Area Manager, Operation

Support asking for an exception to

Exhibit E652.5.0. The exception request

must be submitted at least 15 days prior

to the mailing and may be granted only

for a limited time.

The proposed standard specified that

palletized DSCF rate mailings must be

entered at the appropriate BMC listed in

Exhibit E652.5.0. and sacked mailings

must be entered at an SCF. Two

commenters objected to these

requirements. Since the requirement is

consistent with the costing and

worksharing assumptions that underlie

the rate, it has been left unchanged. The

rate assumes no handling of sacks at

BMCs. Some mailers who were claiming

the DBMC rate will benefit because now

they can get a DSCF rate when dropping

at a BMC.

A parcel consolidator also stated that

the DSCF rate should be allowed for

mail prepared on pallets for 5-digit

facilities that are not capable of

handling pallets according to the Drop

Shipment Product. The requirements as

written allow the Postal Service to

recoup the cost savings passed on to the

mailer in the lower DSCF rate. These

cost savings will not be realized if the

SCF facility receives a 5-digit pallet for

a 5-digit facility that cannot handle

pallets. The SCF would need to

manually unload the parcels off of the

mailer-prepared 5-digit pallet and place

them into another type of 5-digit

container before the SCF could transport

the parcels to that 5-digit facility.

Accordingly, the DMM standards will

not be revised to allow the DSCF rate for

mail prepared on pallets for 5-digit

facilities that are not capable of

handling pallets.

Six commenters requested

reconsideration of the prohibition

against use of pallet boxes on pallets.

After further evaluation, the Postal

Service decided to allow the use of
37962 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

mailer-supplied pallet boxes that

measure up to a maximum of 60 inches

in height, except in the case of facilities

unable to handle pallets. There is no

minimum height requirement for the

pallet box as long as the appropriate

piece and pound minimum requirement

or the 36-inches of mail minimum

requirement are met for each pallet. One

commenter also asked to be allowed to

double-stack pallet boxes on pallets.

The proposed standard has been revised

to permit double stacking. Just as pallets

are not allowed at the DSCF rate for

those 5-digit destinations listed in the

Drop Shipment Product as unable to

handle pallets, pallet boxes on pallets

will not be allowed for those same

offices.

e. DDU Rate Mailings

The proposed standard did not allow

the use of pallet boxes for DDU rate

mailings. Four commenters felt that

pallet boxes should be allowed. The

Postal Service agrees that they may be

used and that mailers will need to

supply them. If a mailer chooses to do

so, they may be double-stacked. As with

DDU mailings that are bedloaded or

sacked or prepared as parcels placed

directly on pallets, the vehicle driver is

required to unload the pallet boxes and

place them at a designated location at

the delivery unit. If they are doublestacked, the driver must remove them

from the vehicle, unstack them, and

then remove any strapping material. At

DDU facilities listed in the Drop

Shipment Product as being unable to

handle pallets, mail that has been

placed directly on pallets or in pallet

boxes on pallets must be off-loaded by

the vehicle driver from the pallet or

pallet box into other containers

specified by the delivery unit.

Two commenters stated that Standard

Mail (A) pieces should be counted

towards the minimum volume required

for the DDU rate. However, eligibility

for the DDU rate category, as with each

of the other destination rate categories

for Parcel Post, has a fixed minimum

volume requirement of 50 pieces of

Parcel Post mail. This requirement is in

the Domestic Mail Classification

Schedule (DMCS) and cannot be

unilaterally modified by the Postal

Service.

One commenter asked whether a

separation would be required beyond a

5-digit destination to be eligible for the

DDU rate. The Postal Service requires a

5-digit separation only. However, if

more than one 5-digit ZIP Code is

served by a delivery unit, the mailer

must separate the pieces by 5-digit ZIP

Code when entered at the DDU.

Another commenter wanted to

bedload parcels entered at DDUs.

Mailings may be bedloaded, placed

directly on pallets, or placed in pallet

boxes on pallets, if the facility can

handle them. Since the DDU rate is

based on worksharing factors that do not

include unloading by Postal Service

employees, the requirement for vehicle

drivers to unload all DDU rate mailings

is retained.

f. OBMC Presort and BMC Presort Rate

Mailings

Three commenters questioned why it

is required that machinable parcels be

placed in pallet boxes on pallets and

why they could not be placed directly

on pallets. In addition, three

commenters wanted to use pallet boxes

for both machinable parcels and

nonmachinable parcels. The proposed

standard has been left unchanged. The

cost savings underlying the discount for

machinable parcels assumes that

machinable parcels are placed in pallet

boxes that can be dumped by tipping

the box onto the parcel sorting

equipment instead of having to

manually unload individual pieces from

a pallet. A pallet box is placed at an

incoming door of a BMC where there is

a dumping operation. Nonmachinable

parcels must be placed directly on

pallets because they are worked at

separate locations within a BMC. They

are not dumped onto a parcel sorting

machine since they are not machinable.

These nonmachinable pieces are sorted

manually. It is safer and more efficient

to manually remove such pieces from

pallets when they are placed directly on

the pallet rather than in a pallet box.

One commenter indicated that the

proposed documentation for the BMC

Presort and OBMC Presort discounts

that requires a listing of the number of

pieces on each individual BMC pallet

was too onerous. The commenter

suggested that a listing by BMC

destination should satisfy the needs of

the Postal Service. The Postal Service

has reconsidered its documentation

needs for verification purposes. Metered

mail is required to bear the exact

postage on each piece and, therefore

documentation is not needed to verify

postage. Permit imprint mail must be

prepared so that all the mail in a single

container is of the same weight and rate

of postage unless the mail is prepared

under a manifest mailing system or

another system of documentation or

records that permits the Postal Service

to adequately verify postage. The

manifest system will require mailers to

list pieces for these rates by BMC

destination. Accordingly, the Postal

Service does not believe that any

additional documentation will be

necessary for mail entered at the BMC

Presort or OBMC Presort discounts and

has removed the documentation

requirement from the DMM standards in

this final rule.

One commenter requested that the

proposed standards for BMC Presort and

OBMC Presort discounts be changed to

allow overflow containers if the

container was at least 50% full. The rate

is based on piece handling efficiencies

that are not realized when the

containers do not meet the required

minimum volumes. Therefore the

prohibition on overflow containers has

been retained.

g. Bedloading

A requirement was included in

proposed standard DMM E652.2.1 that

perishable and nonperishable items in a

bedloaded DBMC or bedloaded DDU

rate mailing would have to be separated.

Fruit shippers in particular expressed

opposition to this on grounds that the

current method of preparing mailings

without separation was satisfactory and

that the new requirement would only

add to their mail preparation costs. The

Postal Service has removed the

requirement from the final standard

after further consideration of the need

for separation.

Two commenters also requested to be

allowed to bedload DSCF rate mailings

as is allowed for DBMC and DDU rate

mailings. The original provision

limiting bedloading to DBMC rate mail

entered at BMCs and ASFs and to DDU

rate mail entered at delivery units has

been retained in the final standard. This

is because the DSCF rate is based upon

receiving 5-digit containers of parcels

that can be cross-docked to the 5-digit

delivery unit.

h. Destinating Facility Appointments

and Vehicle Unloading

The standard requiring the mailers’

drivers to unload destination delivery

unit mailings was the principal area

drawing opposing comments. Six

commenters objected to the driver

unloading requirement for the DDU rate.

A parcel shippers association and a

company commenter took the position

that unloading by drivers should be

limited to bedloaded shipments only.

The same two commenters said that

postal employees should unload pallets

of Standard Mail (B) parcels just as they

do [Standard Mail (A)] flat mail. The

current standards for the Standard Mail

(A) DDU rates do however, require that

vehicle drivers must unload DDU rate

mailings. The comments of the parcel

shippers association included a

suggestion that assistance by postal
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37963

employees should be provided

whenever possible. One commenter

questioned the unloading requirement

on the basis that the Postal Service was

unlikely to make forklifts available to

drivers and another raised the

possibility that having drivers unload

mailings might violate a postal labor

agreement.

Since the worksharing DDU rate

assumes that postal employees will not

unload shipments from vehicles, it was

necessary for the Postal Service to retain

the proposed standard without

amendment. However, to facilitate the

scheduling of drop shipments to

delivery units, a provision has been

made to allow standing appointments if

shipment frequency is weekly or more

often. Another change was made with

respect to the proposed standard

covering deposit conditions (E652.3.7)

that stated mailings arriving more than

1 hour late for scheduled appointments

at delivery units may be refused. This 1-

hour allowance was incorrect. The

proposed standard should have

indicated 20 minutes to be consistent

with current deposit conditions at

delivery units for Standard Mail (A)

mailings. Accordingly, the standard has

been modified to specify 20 minutes.

Several comments were received

about destination entry shipments that

generally requested an easing of existing

provisions. For example, one

commenter wanted to see the

requirement for the time allowed for

driver unloading of destination entry

shipments to BMCs, ASFs, and SCFs

increased from 8 to 12 hours. Another

company submitting comments

disagreed with the existing 2-hour grace

period allowed for scheduled

appointments at BMCs, requesting that

the time allowance be doubled or even

expanded to 8 hours during the peak fall

mailing season. Such liberalization of

existing standards would adversely

impact the window needed by the

Postal Service to handle mailings and

will not be adopted.

Another commenter wanted the Postal

Service to allow a drop and pick option

for palletized loads at BMCs. Again, the

impact on postal operations of such a

change would be negative, as, for

example, postal employees would then

have to shuttle trailers back and forth

from staging areas to facility docks and

back. Accordingly, this comment will

not be adopted.

Two commenters maintained that the

Postal Service should reimburse mailers

for waiting time charges, demurrage, or

other detention costs when the cause is

clearly attributable to the Postal Service

or, alternatively, that there should be an

expanded appeal process to the national

Headquarters level. Under existing

procedures two appeal levels, local

facility manager and district manager,

customer service, are already available

to mailers. While the Postal Service is

willing to consider possible future

changes, no changes are made at this

time.

i. Markings

Two commenters supported the

proposed use of a single drop shipment

marking for DBMC, DSCF, and DDU

Parcel Post rate mail. One commenter

disagreed with the requirement for any

drop shipment markings. Drop

shipment markings are needed to

develop meaningful statistical samples

for the in-office costing system. Costs

developed from this system are used in

rate cases. Although individual rate

markings for each of the drop shipment

rates would result in more accurate

costing, the Postal Service has

determined, based on mailer input, to

require only a single drop shipment

marking for use on DBMC, DSCF and

DDU Parcel Post rate mail. An exception

will be that the current ‘‘DBMC Parcel

Post’’ or ‘‘DBMC PP’’ marking will

continue to be permitted on DBMC rate

mail instead of the new ‘‘Parcel Post’’

and ‘‘Drop Ship’’ markings until January

10, 2000.

One commenter indicated that the

‘‘Presorted Standard’’ marking should

be extended to Standard Mail (B). This

commenter stated that many mailers

now use the ‘‘Bulk Rate’’ indicia for

both Standard Mail (A) and bulk Bound

Printed Matter mailings by simply

adding the ‘‘Bound Printed Matter’’

marking directly to the left of the ‘‘Bulk

Rate’’ indicia. The Postal Service has

amended this final rule to allow use of

the ‘‘Presorted Standard’’ marking in

lieu of the ‘‘Presorted’’ marking for

presorted Bound Printed Matter.

One commenter asked what will

happen to an individual customer’s mail

if it does not bear the ‘‘Parcel Post’’

marking. If this mail is entered at a retail

window, the retail clerk will add the

marking to the mailpiece. If this mail is

entered at an acceptance unit, the

appropriate verification and acceptance

processes will be performed to ensure

that the mail is entered with proper

markings. Since matter weighing over

16 ounces is not permitted to be placed

in collection boxes, there is little

likelihood that mail without the ‘‘Parcel

Post’’ marking will be entered in the

mailstream.

j. Combined Parcels

One commenter stated that Standard

Mail (A) parcels should be permitted to

be combined with Standard Mail (B)

parcels prepared for DDU entry because

the preparation requirements are

identical. The Postal Service disagrees

with this statement. To qualify for

Standard Mail (A) DDU rates, pieces

must be sorted to carrier route. Except

for merchandise samples prepared with

detached address labels, the maximum

size of Enhanced Carrier Route mail is

113⁄4 inches high by 14 inches long, by 3⁄4 of an inch thick (which is flat-sized

mail). Because of the maximum size

dimensions and the requirement to

walk-sequence or LOT-sequence

Enhanced Carrier Route mail, the only

parcels that can qualify for Enhanced

Carrier Route rates are merchandise

samples prepared with detached

address labels. The separate preparation

requirements for merchandise samples

with detached address labels prepared

to qualify for the Enhanced Carrier

Route rates does not lend itself to

combined preparation with Standard

Mail (B) parcels. Accordingly, Standard

Mail (A) and Standard Mail (B) parcels

will not be permitted to be combined

when qualifying for their separate DDU

rates.

One commenter requested that the

requirement for minimum volumes to be

met by Standard Mail (B) alone should

be removed since the incentive for

combining classes is to use the

combined volume to meet the pallet and

sacking minimums. Meeting the pallet

and sack minimums based on Standard

Mail (B) alone is required only when the

Standard Mail (B) preparation method

requires a minimum number of pieces

(e.g., it is not required when the DSCF

minimum of 36 inches of mail on a 5-

digit pallet is used). The Postal Service

wants to ensure that it is moving a

substantial volume of mail on a single

5-digit pallet. If mailers fill a pallet with

36 inches of predominately Standard

Mail (A) mail, it would take a large

number of Standard Mail (A) pieces to

do so. By the same token, placing

predominately Standard Mail (A)

parcels on a pallet based on a 50-piece

minimum criteria could result in a very

small pallet. Therefore the Postal

Service is retaining the rules as

proposed.

7. Special Services

a. Business Reply Mail

Eleven comments were received

concerning the proposal to increase the

minimum thickness of BRM pieces from

0.007 inch to 0.009 inch thick for those

pieces that bear a barcode and measure

greater than 41⁄4 by 6 inches. Nine

commenters stated that 0.009 inch thick

paper stock is more expensive than

0.007 inch thick paper stock. Six
37964 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

commenters indicated that the increased

weight of the stock would increase

shipping and trucking costs of the paper

stock and increase pound-rate postage

on the outgoing mailpiece (publication)

that the BRM piece is inserted into. Four

commenters suggested that mailers will

cease using the cards and use some

other medium than the mail to increase

their circulation and market their

products. One commenter stated that

this change is not directly related to rate

and fee increases in Docket No. R97–1.

One commenter suggested the Postal

Service develop a new maximum size

limit that could be used with 0.007 inch

thick paper stock, such as 5 inches by

7 inches. Four commenters stated that

the Postal Service should study the

impact on mailers and the Postal

Service before adopting this

requirement. Three commenters

indicated that no compelling rationale

for this change was provided in the

proposal, such as the existence of

machinability problems. Nine

commenters indicated that there is

currently only a limited supply of 0.009

inch card stock. Two commenters

indicated that mailers would need a

grace period before this requirement

went into effect so that their printers

could develop new paper supplies. One

commenter indicated that Postal Service

testimony in R97–1 indicated that only

a small proportion of BRM is processed

through BRMAS or through barcode

sorters and that the additional expense

of thicker paper stock is not warranted

if the pieces are not likely to be handled

in an automated fashion.

A low incidence of processing mail on

barcode sorters is true only for the

accounting activities related to BRM.

However, the lower First-Class postage

rate for QBRM is based on lower costs

due to processing pieces on barcode

sorters in non-accounting operations (i.

e. in processing the mail from the

collection box to the facility where the

accounting procedures are performed).

The Postal Service has adopted the

minimum thickness requirement of

0.009 inch for pieces measuring over

41⁄4 in height and/or 6 inches in length

as proposed. This requirement is based

on engineering studies. These studies

have shown that mailable pieces not

larger than 41⁄4 by 6 inches with a

minimum thickness of 0.007 inch and

meeting specified basis weight

requirements can be successfully

processed on automation equipment,

while pieces larger than 41⁄4 by 6 inches

generally must be 0.009 inch thick to be

successfully processed on automation

equipment. Adoption of this rule will

ensure that business reply pieces

entered at the automation QBRM rate or

that otherwise bear a barcode will be

sufficiently sturdy to be successfully

transported through postal automation

equipment and will minimize the

potential for damaged pieces. The Postal

Service implemented this minimum

thickness requirement for automation

rate mailings on February 24, 1991,

based on these studies and on mailer

complaints concerning damaged pieces.

Although at that time these minimum

thickness requirements were not

applied to BRMAS or other barcoded

BRM pieces, the Postal Service believed

then and believes today that the 0.009

inch minimum thickness requirement

for pieces measuring over 41⁄4 by 6

inches is necessary for efficient

processing on automation equipment. In

view of the discounted First-Class

postage rate applied to QBRM postage

that is based primarily on the savings

for automated processing, the Postal

Service feels it is appropriate to apply

the same standards to this mail as it

does to other mail entered at automation

rates. The Postal Service understands

that mailers may need time to deplete

existing stock of BRM mailpieces and to

develop suppliers of thicker paper

stock. Therefore, the effective date of the

0.009 inch minimum thickness

requirement for barcoded BRM pieces

measuring over 41⁄4 by 6 inches will be

January 10, 2001. This gives mailers 2–

1⁄2 years notice to comply with this

change.

Only one comment was received

regarding barcode placement. This

commenter indicated that the proposed

change to DMM S922.5.1 was confusing.

This commenter assumed that the Postal

Service was not seeking to further

restrict placement of barcodes on lettersize BRM and asked why the one-year

grace period for compliance was

needed. The proposed change was to

make the placement of lower right

barcodes for BRM comply with C840.

Currently, pieces of BRM prebarcode in

the lower right corner may: (1) have a

barcode clear zone with a left boundary

that is 41⁄2 inches from the right edge of

the piece (not 43⁄4 inches as required in

C840); (2) have a lower right barcode for

which the leftmost bar is located

between 31⁄4 and 4 inches from the right

edge of the piece (not between 31⁄2 and

41⁄4 inches as required under C840); (3)

have a lower right barcode window, that

has a left boundary measuring 41⁄2

inches from the right edge of the piece

(not 43⁄4 inches as required under C840).

The final standards in DMM S922.5.1

have been revised to clarify this matter.

Mailers will be given until January 10,

2001, to use existing stocks of such

prebarcoded BRM envelopes and cards

and to procure new stock that meets the

DMM C840 requirements.

One comment was received

questioning why proposed S922.6.8c(4)

prohibits the use of business reply

labels on letter-size envelopes with a

height more than 41⁄2 inches. This is not

a change. The same standard appears

today in S922.6.10c(4). This standard

will be maintained in order to assure the

readability of the address on the lettersize piece. If labels were permitted on

letter-size pieces up to the maximum

height of 61⁄8 inches, the address on the

label would not be placed within the

optical character read (OCR) area of the

mailpiece.

One comment was received regarding

the format error notification process

described in proposed DMM S922.5.3.

The commenter stated that although

mailers are willing to correct errors

immediately, they need a grace period

in which pieces already distributed will

be returned. The cited DMM section

only requires that all future BRM pieces

distributed by any means must meet the

BRM format standards. This commenter

also indicated that the requirement for

mailers who have had their BRM permit

revoked for repeatedly distributing BRM

mail that does not meet the format

requirements to submit 2 samples of

each BRM format for approval for a twoyear period after completing a new BRM

application is overly punitive. The

commenter stated publishers receive

inserts too close to printing dates to

allow time for the Postal Service to

review the format. The commenter

should note that this provision is not a

change. The same standard appears

today in S922.5.7 and has been in place

for several years. The Postal Service

feels that no change in policy is

warranted at this time. This provision

only applies to permit holders whose

permit was previously revoked for

repeated format violations and should

not affect the vast majority of mailers.

b. Insurance

One commenter requested

clarification of DMM S913.12b. He

indicated it is not clear what level of

service would be provided to an item

mailed under this DMM section. This

section in essence states that matter

mailed at First-Class Mail or Priority

Mail rates may be insured only if it

consists of matter that could also be

mailed at Standard Mail rates (that is, it

is not any of the types of items required

to be mailed at First-Class rates under

DMM E110). The level of service

provided for these items will be FirstClass or Priority Mail service according

to the weight of the item and the rate of

postage paid.
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37965

c. Return Receipt Service

Three commenters had concerns over

the Postal Service’s proposal to modify

DMM D042.1.7a and b. The proposed

revisions stipulated that organizations

receiving large volumes of pieces

bearing return receipts would only need

to sign a manifest listing all of the

accountable mail before the mail was

delivered to the organization. The

current DMM rules stipulate that the

recipient sign the delivery receipt and

the return receipt and hand the receipts

over to the Postal Service before the

mailpieces can be opened, or given to

the recipient. These commenters were

concerned that allowing customers to

complete return receipts without Postal

Service controls is inappropriate and

does not guarantee the customer that the

return receipt he or she has paid for will

be returned or will be completed

properly. The Postal Service proposed

this revision to reflect the operational

conditions in plants that employ

automated delivery receipt systems for

processing accountable mail. However,

based on the mailer comments received,

the Postal Service determined not to

revise DMM D042.1.7a and b. The Postal

Service will work with its customers

that receive large volumes of return

receipts to ensure that our customers get

the recipient’s signature, date of

delivery, and address, if different, under

the standards in the current DMM.

e. Requests for Use of Various Special

Services With Standard Mail (A)

Two commenters recommended that

DMM E612.4.10 be revised to allow

COD, insurance, and registry service

with Presorted Standard Mail (A).

Another commenter indicated that

certified, COD, insurance, registered,

return receipt, return receipt for

merchandise, special handling, and

delivery confirmation services should

be available for Standard Mail (A) since

these services are available today for

merchandise and providing these

services would generate revenue. DMM

E612.4.10 contains the information in

current DMM E612.4.1. This section

states that bulk rate Standard Mail (A)

may not use certified, collect on

delivery, insurance, registry, return

receipt for merchandise, and special

handling services. The proposed DMM

language simply moved this information

into a separate section so that it is easier

to find. Although a few of the above

services were previously available for

Standard Mail (A) matter mailed at the

single-piece rates, the elimination of the

single-piece Standard Mail (A) rates

now excludes any Standard Mail (A)

from receiving these services. Offering

these services with Standard Mail (A)

would in many instances require a

classification case to be filed with the

PRC. Therefore, such changes will not

be implemented with these R97–1

implementation rules. However, the

Postal Service may consider offering

some of these services with Standard

Mail (A) at a future date.

D. Summary of Domestic Mail Manual

(DMM) Changes

The following are changes organized

by DMM module. They are intended as

an overview only and should not be

viewed by readers as defining every

revision.

A Addressing

A060.5.3 is amended to eliminate the

option to pay postage for excess or

undeliverable detached address labels

(DALs) or items being returned at the

single-piece Standard Mail (A) rates.

Postage for excess or undeliverable

DALs or items being returned is

computed at the applicable single-piece

rate (First-Class Mail, Priority Mail, or

Standard Mail (B)) for the combined

weight of the DAL and the

accompanying item, regardless of

whether both are being returned.

C Characteristics and Content

References to single-piece Standard

Mail (A) are deleted throughout. C050 is

revised to add ‘‘Nonmachinable’’ to the

title of 5.0 and 6.0 (Irregular and

Outside Parcels). C100.4.0 is revised to

include keys and identification devices

as items that may be considered

nonstandard mail. C600.1.2 is amended

to allow Parcel Post mailings to include

pieces measuring over 108 inches, but

not over 130 inches, in combined length

and girth, if the oversized Parcel Post

rate is paid. C600.1.2 also is amended to

require Parcel Post pieces that weigh

less than 15 pounds but measure more

than 84 inches in combined length and

girth to pay a rate equal to that of a 15-

pound parcel for the zone to which the

parcel is addressed. C600.2 is amended

to delete the nonstandard surcharge

criteria that formerly applied to singlepiece Standard Mail (A). C810.2 is

amended to provide new maximum

weights for automation ‘‘heavy’’ letters.

C820.2 is amended to increase the

maximum weight limit for First-Class

automation rate flats to 13 ounces.

C840.8 is amended to add a stipulation

for ZIP+4 barcodes for QBRM and other

barcoded BRM. A new C850 is added to

provide standards for barcodes on

parcels.

D Deposit, Collection, and Delivery

D010.1.1 is amended to delete the

term ‘‘single-piece.’’ D010.1.2 is

amended to exclude Parcel Post pieces

mailed at the DDU and DSCF rates (as

well as mail at DBMC rates), or claiming

the OBMC Presort discount, from

obtaining pickup service. D600.2 is

amended to remove the sentence that

allowed single-piece Standard Mail (A)

bearing adhesive stamps to be placed in

collection boxes.

E Eligibility

E060.5 is amended to reflect the new

13-ounce weight limit for First-Class

Mail. E060.12 is amended to remove

single-piece Standard Mail (A) as a

permissible rate for the return of items

under penalty merchandise return

service. E110.4 is revised to delete

references to Presorted Priority Mail.

E120 is revised to remove references to

Presorted Priority Mail, to add

information on rates and fees applicable

to keys and identification devices, and

to make minor organizational changes.

E130 is revised for clarity and to add

information on rates and fees applicable

to keys and identification devices. E150

is added to provide information on

qualified business reply mail. E200.14 is

amended to reflect the elimination of

single-piece Standard Mail (A) rates.

E230.1, and E230.3 through E230.5 is

revised to provide for separate 5-digit

and 3-digit rates for Regular, Nonprofit,

Classroom, and In-County subclasses,

and to show that the applicable 3-digit

rates will apply to both unique and

nonunique 3-digit ZIP Code areas.

E230.6 is revised to allow In-County

mail to qualify for high density carrier

walk-sequence rates based on either a

minimum of 125 pieces per route or

25% of the total active possible

deliveries on the carrier route. E230.7 is

amended to require documentation for

pieces and copies mailed to all 3-digit

destinations, (not only unique 3-digit

destinations). E240.2 is amended to is

revised to provide for separate 5-digit

and 3-digit rates for Regular, Nonprofit,

Classroom, and In-County subclasses,

and to show that the applicable 3-digit

rates will apply to both unique and

nonunique 3-digit ZIP Code areas. E600

is revised throughout to delete

references to single-piece Standard Mail

(A) and to change the name

‘‘nonautomation presort’’ to ‘‘Presorted’’

or ‘‘Presorted Standard.’’ E612 is revised

to change the weight breakpoints for the

Standard Mail (A) minimum per-piece

rates, require Standard Mail (A) mailed

at a Standard Mail (B) rate to show the

applicable Standard Mail (B) marking,

and to move restrictions on use of
37966 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

special services from E612.4.1 to new

section E612.4.10. E620 and E630 are

reorganized so that E620 contains

standards for Standard Mail (A) and

E630 contains standards for Standard

Mail (B). E620 is revised to add new

minimum volume requirements for

Presorted Standard mailings, to add

provisions for mailing certain matter not

eligible for Standard Mail (A) rates that

bears Standard Mail (A) markings at the

single-piece First-Class or Priority Mail

rates, and to add provisions for the new

residual shape surcharge. E630 is

revised to add provisions for new DSCF

and DDU rates and new OBMC Presort,

BMC Presort discounts, the oversized

parcel provisions, and balloon rate

provisions. E630 is revised to add

provisions for a barcoded discount for

Standard Mail (B) rates. E630 is revised

to change marking requirements for

Standard Mail (B). E640 is amended to

clarify that Nonprofit rate mail may

qualify for automation rates. E652 is

revised to add provisions for DSCF and

DDU Parcel Post rates.

F Forwarding and Related Services

F010 is amended throughout to delete

references to single-piece Standard Mail

(A). F010 is amended to revise

forwarding and related services for

Periodicals and for Standard Mail (A) to

show that return postage is subject to

the First-Class or Priority Mail rates

based on weight, except for machinable

Standard Mail (A) parcels returned

under Bulk Parcel Return Service

(BPRS). F020 is revised to remove

references to single-piece Standard Mail

(A).

G General Information

G043 is revised to add names and

addresses of organizations from whom

barcode specifications and barcode

grading requirements can be obtained.

L Labeling Lists

Section L100, including labeling list

L102, ADCs—Presorted Priority Mail, is

deleted. New labeling list L605, BMCs—

Nonmachinable Parcel Post, is added.

M Mail Preparation and Sortation

M011.1 is revised to add the

definition of an overflow sack for Parcel

Post DSCF rate mailings. M011.1 is

revised to amend the definition of a

mailing. M012 is revised to change

marking requirements for Standard Mail

(A) and (B), to clarify that no marking

is needed for single-piece First-Class

Mail, and to specify time frames for the

new marking requirements. In M032,

Exhibit 1.3 is revised to show headings

for new Periodicals rate levels and for

new Parcel Post rates and to change the

name ‘‘bulk Bound Printed Matter’’ to

‘‘presorted Bound Printed Matter.’’

M033.1 is revised to reflect the new 13-

ounce weight limit for First-Class Mail.

M041 is revised to reflect requirements

for new Standard Mail (B) rates (OBMC

Presort, BMC presort, DSCF, DDU).

M045 is revised to add preparation

requirements for new Standard Mail (B)

rates (OBMC Presort, BMC presort,

DSCF, DDU). M050.4 is amended to

reflect revised placement of sequencing

date information on mailing statements

and to add documentation requirements

for the Periodicals In-County rate mail

that qualifies for high density rates

under the new 25% of the total active

possible deliveries per carrier route

criteria. M072.1.1 is amended for

clarity. M072.2.5 is amended to delete

references to ‘‘Bulk Parcel Post,’’ revise

‘‘bulk Bound Printed Matter’’ to

‘‘presorted Bound Printed Matter,’’ add

an exception to the zone separation

requirement, and to add information on

preparation of drop shipment mail for

Parcel Post DSCF and DDU rates. M073

is revised to add information about

permissibility and preparation

requirements for combining Standard

Mail (A) and Standard Mail (B) parcels

in mailings qualifying for new Parcel

Post rates (OBMC Presort, BMC Presort,

DSCF, and DDU). M120 is revised to

delete the sections on Presorted Priority

Mail. M200 is revised to require

preparation of an SCF level of sack.

M130.2 and M130.3 are amended to

revise their titles. M130.5 is revised to

reflect the new 13-ounce weight limit

for First-Class Mail. M200.3 is revised to

require preparation of an SCF sack for

nonletters, to delete the provisions for

an optional origin/required entry 3-digit

sack, and to add provisions for an

optional origin/required entry SCF sack.

M620 is revised to change

‘‘nonautomation presort’’ to

‘‘Presorted,’’ to revise references to E620

and E630, and to revise rate marking

requirements including time frames for

changing the ‘‘Bulk Rate’’ marking to

‘‘Presorted Standard.’’ M630 is amended

to add preparation requirements for

DSCF and DDU rates; to change

‘‘nonautomation presort’’ to

‘‘Presorted;’’ to revise references to E620

and E630; and to revise rate marking

requirements for all Standard Mail (B)

including placement of subclass

markings, new generic rate markings for

drop shipment rates, revising ‘‘bulk

Bound Printed Matter’’ to ‘‘presorted

Bound Printed Matter, eliminating the

‘‘Bulk Parcel Post’’ marking, removing

the requirement for a 5-digit or 3-digit

ZIP Code in the rate marking for DBMC

rates, eliminating the ‘‘catalog rate’’

marking for Bound Printed Matter, and

adding the abbreviation ‘‘PRSRT’’ for

‘‘Presorted’’ in the ‘‘Presorted Special

Standard’’ marking. M810 is reorganized

and revised for clarity and to add new

rate categories for Periodicals and to

make the 5-digit/scheme sortation level

optional for Periodicals automation

letters. M820 is revised to make the SCF

sack a required level of presort for

Periodicals automation flats, to delete

the provisions for an optional origin/

required entry 3-digit sack, and to add

provisions for an optional origin/

required entry SCF sack.

P Postage and Payment Methods

P011 is revised to delete references to

single-piece Standard Mail (A). P012

revises standardized documentation for

Periodicals to add separate 5-digit and

3-digit rates for both automation and

nonautomation and to add new rate

abbreviations for nonautomation 5-digit

and 3-digit rates. P013 is revised to

reflect payment for keys and

identification devices at First-Class Mail

and Priority Mail rates plus a $0.30 fee

instead of single-piece Standard Mail

(A) rates, to delete sections concerning

computation of single-piece Standard

Mail (A) rates, to revise the breakpoints

for Standard Mail (A) rates, to delete

references to Bulk Parcel Post, and to

revise the term ‘‘bulk Bound Printed

Matter’’ to ‘‘presorted Bound Printed

Matter.’’ P014.2 is revised to delete

references to single-piece Standard Mail

(A). P030.1.5 is revised to reflect the

new 13-ounce weight limit for FirstClass Mail. P030.5.4 is revised to delete

a reference to single-piece Standard

Mail (A). P040.4.1 is revised to reflect

the new rate marking requirements for

First-Class and Standard Mail and

delete examples for single-piece

Standard Mail (A). P100 is revised to

add payment provisions for mailing

certain matter not eligible for Standard

Mail (A) rates that bears Standard Mail

(A) markings at the single-piece FirstClass or Priority Mail rates. P600 is

revised to establish postage payment

methods for Standard Mail (B)

containing a combination of discounts,

to delete information on payment and

use of ‘‘SNGLP’’ marking for singlepiece Standard Mail (A), and to clarify

that for mailings of identical weight,

Standard Mail (A) postage may be

affixed to all pieces in the mailing at the

lowest rate in the mailing job. P710 is

revised to reflect the new marking

requirements for regular rate Standard

Mail (A). P750 is revised to include

instructions on the new Parcel Post

DSCF and DDU rates. P760 is revised to

change ‘‘nonautomation’’ to ‘‘Presorted’’

for Standard Mail (A) and to delete
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37967

references to single-piece Standard Mail

(A).

R Rates and Fees

The entire module is revised to reflect

new rates and fees.

S Special Services

S010 is revised to add information on

claims for the new bulk insurance

service. S070 is revised to clarify

applicability of Priority Mail Drop

Shipment. S911 is revised to reflect

changes to indemnity coverage for

registered mail. S913 is revised to

eliminate references to single-piece

Standard Mail (A), to provide

clarification to matter eligible for

insurance, and to include rules for the

new bulk insurance service. S915.1 and

S915.2 are amended for clarity. S917 is

amended to delete availability of return

receipt for merchandise with singlepiece Standard Mail (A). S921 is

amended to delete availability of COD

with single-piece Standard Mail (A).

S922 is revised to change references

from BRMAS to QBRM, to remove

eligibility requirements for BRMAS

(these are relocated under QBRM in

E150), to require all BRM bearing

barcodes to meet the requirements of

C810 and C840 (except basis weight

requirements for envelopes in C810.7.1),

and to replace current BRM standards

relative to reflectance requirements,

paper weight, and self-mailers with

current mailpiece design requirements

in C810 and C830 (except basis weight

requirements for envelopes in C810.7.1,

and the retention and clarification of

current prohibition of red fluorescence

in excess of 4.0 phosphor meter units).

S923 is revised to eliminate the return

of merchandise return service pieces at

single-piece Standard Mail (A) rates, to

prescribe new rates of return and

corresponding markings, and to reflect

new standards concerning registered

mail used with that service. S924 is

revised to eliminate references to singlepiece Standard Mail (A). S930 is

amended to remove availability of

special handling service for single-piece

Standard Mail (A), and to correct the

rules to allow First-Class Mail and

Priority Mail to receive special

handling.

List of Subjects in 39 CFR Part 111

Postal Service.

For the reasons discussed above, the

Postal Service hereby adopts the

following amendments to the Domestic

Mail Manual, which is incorporated by

reference in the Code of Federal

Regulations (see 39 CFR Part 111).

PART 111—[AMENDED]

1. The authority citation for 39 CFR

part 111 continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,

401, 403, 404, 3001–3011, 3201–3219, 3403–

3406, 3621, 5001.

2. Revise the following sections of the

Domestic Mail Manual as follows:

A Addressing

A000 Basic Addressing

* * * * *

A060 Detached Address Labels (DALs)

* * * * *

5.0 POSTAGE

* * * * *

5.3 Returns

[Amend the first sentence of 5.3 by

replacing ‘‘Standard Mail’’ with ‘‘FirstClass Mail’’ to read as follows:]

Postage for excess or undeliverable

DALs that are properly endorsed or for

items being returned is computed at the

applicable single-piece rate (First-Class

Mail, Priority Mail, or Standard Mail

(B)) applicable to the combined weight

of the DAL and the accompanying item,

regardless of whether both are being

returned. * * *

* * * * *

C Characteristics and Content

C000 General Information

C010 General Mailability Standards

1.0 MINIMUM AND MAXIMUM

DIMENSIONS

* * * * *

1.6 Nonstandard Surcharge

[Amend 1.6 by removing ‘‘or C600,

respectively,’’ and ‘‘or Single-Piece

Standard Mail’’ to read as follows:]

Because of address placement

(orientation) under C100, a mailable

piece of First-Class Mail weighing 1

ounce or less can be subject to the

corresponding nonstandard surcharge.

* * * * *

C022 Perishables

* * * * *

3.0 LIVE ANIMALS

3.1 Day-Old Poultry

[Amend 3. 1f by adding ‘‘or Priority

Mail’’ for clarity as follows:]

Day-old poultry vaccinated with

Newcastle disease (live virus) is

nonmailable. Live day-old chickens,

ducks, geese, partridges, pheasants

(mailable only from April through

August), guinea fowl, quail, and turkeys

are acceptable in the mail only if:

* * * * *

f. The shipment bears special

handling postage in addition to regular

postage, unless sent at the First-Class

Mail or Priority Mail rate.

* * * * *

C024 Other Restricted or Nonmailable

Matter

* * * * *

18.0 ODD-SHAPED ITEMS IN

ENVELOPES

18.1 Nonmailable

[Amend 18.1 by removing ‘‘Standard

Mail (A) rate’’ to read as follows:]

Pens, bottle caps, and similar oddshaped items are not acceptable in

letter-size envelopes at the single-piece

First-Class Mail rate.

* * * * *

C050 Mail Processing Categories

* * * * *

[Amend 5.0 to add ‘‘Nonmachinable’’ to

the title as follows:]

5.0 IRREGULAR PARCEL

(NONMACHINABLE)

* * * * *

[Amend 6.0 to add ‘‘Nonmachinable’’ to

the title as follows:]

6.0 OUTSIDE PARCEL

(NONMACHINABLE)

* * * * *

C100 First-Class Mail

1.0 DIMENSIONS

1.1 Maximum Weight and Size

[Revise 1.1 to show the new maximum

weight of 13 ounces to read as follows:]

Each piece may not weigh more than

70 pounds. Matter at First-Class Mail

rates may not exceed 13 ounces. The

combined length and girth of a piece

(i.e., the length of its longest side plus

the distance around its thickest part)

may not exceed 108 inches. (Lower size

or weight standards apply to mail

claimed at certain rates or addressed to

certain APOs and FPOs.)

* * * * *

4.0 NONSTANDARD MAIL

[Revise 4.0 to include keys and

identification devices as items subject to

the nonstandard classification as

follows:]

Except for Priority Mail, any piece of

First-Class Mail (including keys or

identification devices) weighing 1 ounce

or less and not claimed at a card rate is

nonstandard and subject to the

applicable surcharge if its thickness
37968 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

exceeds 1⁄4 inch or, if based on the

placement (orientation) of the address,

its length exceeds 111⁄2 inches, its height

exceeds 61⁄8 inches, or its aspect ratio

(length divided by height) is less than

1.3 or more than 2.5.

* * * * *

C600 Standard Mail

1.0 DIMENSIONS

1.1 Standard Mail (A)

[Amend 1.1b to read as follows:]

These dimensional standards apply to

Standard Mail (A):

* * * * *

b. Presorted (3⁄5 and basic rate)

Regular and Nonprofit Standard Mail

(A) are subject only to the basic

mailability standards in C010.

* * * * *

1.2 Standard Mail (B)

[Amend and renumber 1.2 as follows to

specify requirements for oversized

Parcel Post and add a Parcel Post

balloon rate:]

These dimensional standards apply to

Standard Mail (B):

a. No piece may weigh more than 70

pounds, except matter at Bound Printed

Matter rates may not weigh more than

15 pounds.

b. Except for Parcel Post under 1.2c,

the combined length and girth of a piece

(i.e., the length of its longest side plus

the distance around its thickest part)

may not exceed 108 inches.

c. Parcel Post pieces measuring over

108 inches in combined length and

girth, but not more than 130 inches in

combined length and girth, are mailable

at the applicable oversized rate.

d. Parcel Post pieces measuring over

84 inches in combined length and girth,

but not more than 108 inches in

combined length and girth, and

weighing less than 15 pounds are

mailable at the rate equal to that of a 15-

pound parcel for the zone to which the

parcel is addressed.

e. Two or more packages may be

mailed as a single parcel, if they are

about the same size or shape or if they

are parts of one article, if they are

securely wrapped or fastened together,

and if they do not together exceed the

weight or size limits.

f. Lower size or weight standards

apply to mail claimed at certain rates,

addressed to certain APOs and FPOs, or

sent by the Department of State to U.S.

Government personnel abroad.

g. Pieces might be subject to

minimum weight or dimensions based

on the standards for specific rates.

[Delete current 2.1, renumber current

2.2 as 2.0 and revise to read as follows:]

2.0 NONMACHINABLE SURCHARGE

Items described in E630 and mailed at

the inter-BMC/ASF Parcel Post rates are

subject to a nonmachinable surcharge

unless the applicable special handling

fee is paid.

* * * * *

C800 Automation-Compatible Mail

C810 Letters and Cards

* * * * *

2.0 DIMENSIONS

* * * * *

2.3 Maximum Weight

[Amend 2.3c through 2.3f to revise the

maximum ounce weights for heavy

letters to read as follows:]

Maximum weight limits are as

follows:

* * * * *

c. 3.3087 ounces: automation Regular

Standard Mail (A) heavy letters, subject

to 7.5.

d. 3.3062 ounces: automation

Enhanced Carrier Route heavy letters,

subject to 7.5.

e. 3.2873 ounces: automation

Nonprofit Standard Mail (A) heavy

letters, subject to 7.5.

f. 3.3103 ounces: automation

Nonprofit Enhanced Carrier Route,

automation First-Class Mail, and

automation Periodicals heavy letters,

subject to 7.5.

* * * * *

C820 Flats

* * * * *

2.0 DIMENSIONS

* * * * *

2.4 Maximum Weight

[Revise 2.4 to show the new maximum

weight of 13 ounces to read as follows:]

Maximum weight limits are as

follows:

a. For First-Class Mail, 13 ounces.

b. For Periodicals, 16 ounces.

c. For Standard Mail (A), less than 16

ounces

* * * * *

C840 Barcoding Standards

* * * * *

8.0 5-DIGIT AND ZIP+4 BARCODES

[Revise the title and add a new sentence

to 8.1 to read as follows:]

8.1 Permissibility

An automation rate letter-size piece

may not bear a 5-digit or ZIP+4 barcode

in the lower right corner (barcode clear

zone); the piece may bear a 5-digit or

ZIP+4 barcode in the address block only

if a DPBC appears in the lower right

corner. A Qualified Business Reply Mail

piece and other barcoded letter-size

Business Reply Mail must only bear a

ZIP+4 barcode; the ZIP+4 barcode may

appear in the address block when

printed on an insert that appears

through a window or on an address

label affixed directly to the piece; or

may appear in the lower right corner

either printed directly on the mailpiece

or on an insert that appears through a

window. An automation rate flat-size

piece must not bear a 5-digit barcode.

* * * * *

[Add new C850 to read as follows.]

C850 Standard Mail (B) Barcode

Standards

1.0 BARCODE SYMBOLOGIES

1.1 Basic Requirement

Every addressed mailpiece eligible for

a Standard Mail (B) barcode discount

described in E630 must bear a properly

prepared barcode that represents the

correct ZIP Code information for the

address on the mailpiece plus the

appropriate verifier character suffix or

application identifier prefix characters

appropriate for the barcode symbology

used as described in 1.0 through 4.0.

The combination of appropriate ZIP

Code and appropriate verifier or

application identifier characters

uniquely identifies the barcode as the

postal routing code.

1.2 Permissible Barcode Symbologies.

Until January 10, 2004, barcodes must

be printed in one of the following

symbologies: UCC/EAN Code 128; USS

Code 128; USS Code I 2⁄5; and USS Code

39. Effective January 10, 2004, only the

UCC/EAN Code 128 may be used.

1.3 Postal Routing Barcode Elements

a. UCC/EAN Code 128. For barcodes

prepared using the UCC/EAN Code 128

symbology the postal routing barcode

must consist of the leading Application

Identifier (AI) of ‘‘420’’ followed by the

ZIP Code for the address on the

mailpiece. The ZIP Code for the address

on the mailpiece may be either the 5-

digit ZIP Code or the ZIP+4 code. The

Application Identifier indicates the

meaning of the barcode. The USPS has

designated 420 as the AI for domestic

postal routing barcodes (and 421 as the

AI for international postal routing

barcodes). UCC/EAN Code 128 barcodes

MUST NOT include the trailing verifier

character ‘‘9’’.

b. Other Permissible Symbologies. For

the USS Code 128, USS Code I 2⁄5, and

USS Code 39 symbologies, the postal

routing barcode must consist of the 5-

digit ZIP Code for the address on the
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37969

mailpiece, followed by the 1-digit

verifier character ‘‘9.’’ Barcodes

prepared under these symbologies

MUST NOT include the prefix ‘‘420.’’

1.4 Technical Specifications

UCC/EAN Code 128 barcodes must

meet the technical specifications in the

‘‘UCC/EAN–128 Application Identifier

Standard,’’ which can be obtained from

Uniform Code Council, Inc. and the

specifications in 2.0. The UCC

specifications can be obtained from:

UNIFORM CODE COUNCIL, INC, 8163

OLD YANKEE RD STE J, DAYTON OH

45458–1839

USS Code I 2/5, USS Code 39, and

USS Code 128 barcodes must meet the

technical specifications in Uniform

Symbology Specification (USS)

documents USS–I 2/5, USS–39, and

USS–128, respectively, and the

specifications in 2.0. The USS Code

specifications are available from:

AUTOMATIC IDENTIFICATION

MANUFACTURERS (AIM), 634 ALPHA

DR, PITTSBURGH PA 15238–2802,

www.aimusa.org

1.5 One Postal Routing Barcode.

A mailer may include more than one

barcode on a mailpiece provided there

is only one barcode that is prepared

under the postal routing code structure.

That is, a mailpiece must contain only

one barcode encoded with a 5-digit

numeric code followed by the character

‘‘9’’ or encoded with ‘‘420’’ followed by

a 5-digit or 9-digit numeric code.

2.0 BARCODE CHARACTERISTICS

2.1 Dimensions

The preferred range of widths of

narrow bars and spaces is 0.015 inch to

0.017 inch. The width of the narrow

bars or spaces must be at least 0.013

inch but no more than 0.021 inch. All

bars must be at least 0.75 inch high. The

wide/narrow bar width ratio for Code I

2/5 and Code 39 must be at least 2.5 to

1.

2.2 Reflectance

When measured in the red spectral

range between 630 nanometers and 675

nanometers, the minimum white bar

(space) reflectance (Rs) must be greater

than 50%, and the maximum bar

reflectance (Rb) must be less than 25%.

The minimum print reflectance

difference (Rs–Rb) is 40%. Reflectance

must be measured with a USPSspecified reflectance meter or barcode

verifier.

2.3 Quality

All barcodes in each mailing must

measure American National Standards

Institute (ANSI) grade C or above. At

least 70% of the barcodes in each

mailing must measure ANSI grade A or

B. For all printing processes, it is

strongly recommended that the symbols

be tested to ensure that they meet

specification requirements. Information

concerning ANSI guidelines X3.182–

1990 may be obtained from: AMERICAN

STANDARDS INSTITUTE INC, 11 W

42ND ST, NEW YORK NY 10036–8002,

(212) 642–4900

2.4 Substrate Material

All barcode symbols must be printed

on substrate material that preserves the

optical specification as described in the

AIM–USA Uniform Symbology

Specification documents. Typically,

white label stock commonly used for

barcode generation is suitable,

providing it is not glossy (causing

mirror-like [specular] reflection) nor

prone to smearing or smudging.

3.0 BARCODE LOCATION

3.1 General Standards

The address and barcode must be on

the side of the mailpiece with the largest

surface area, except that the address and

barcode must be on the top surface of

the mailpiece when its shape requires

specific orientation for stability during

automated processing. The barcode

should be placed immediately adjacent

to the address and at least 1 inch from

the edge of the mailpiece. The delivery

address or barcode may be printed on an

attachment or on an enclosure in a

window envelope, subject to the

reflectance standards in 2.2.

3.2 Barcode Clear Zone

The barcode must be located as

specified in 3.1. No printing may appear

in an area 1⁄8 inch above and below the

barcode regardless of location. A

minimum clear zone equal to 10 times

the average measured narrow element

(bars or space) width must be

maintained to the left and right of the

barcode.

4.0 BARCODE CONTENT

4.1 Human-Readable Barcode

Information

If the barcode is printed on the same

label as the mailing address, and in

close proximity to that address, the

human-readable equivalent of the ZIP

Code or ZIP+4 code encoded in the

barcode may be omitted. If the barcode

is printed on a separate label from the

mailing address, the human-readable

equivalent of the 5-digit ZIP Code or

ZIP+4 code encoded in the barcode (i.e.,

omitting the existing ‘‘420’’ Application

Identifier for UCC/EAN 128 and

omitting the existing ‘‘9’’ verifier

character for the other three barcode

symbologies) must be printed between

1⁄8 inch and 1⁄2 inch below the barcode

preceded by the word ‘‘ZIP’’ in 10 point

or larger bold sans serif type. In

addition, the location of the word ‘‘ZIP’’

may be alternatively placed no less than

10 time the average narrow bar or space

element width and not more than 1⁄2

inch to the left of the barcode, in 12

point or larger bold sans serif type.

* * * * *

D Deposit, Collection, and Delivery

D000 Basic Information

D010 Pickup Service

1.0 BASIC STANDARDS

1.1 Availability

[Amend 1.1b to delete the term ‘‘singlepiece rate’’ to read as follows:]

Subject to the standards in D010,

pickup service is available from

designated post offices for:

* * * * *

b. Priority Mail.

* * * * *

1.2 Not Available

[Amend 1.2c to include all destination

entry rate pieces as follows:]

Pickup service is not available for

pieces:

* * * * *

c. Claimed at the Parcel Post DBMC,

DSCF, or DDU destination entry rates, or

claiming the Parcel Post OBMC Presort

discount.

* * * * *

D600 Standard Mail

* * * * *

2.0 MAIL DEPOSIT

[Amend the heading and contents of 2.1

to read as follows:]

2.1 Single-Piece Standard Mail (B)

Rates

Single-piece rate Standard Mail (B)

must be deposited at a time and place

specified by the mailing post office

postmaster. Metered mail must be

deposited in locations under the

jurisdiction of the licensing post office,

except as permitted in D072. Permit

imprint mail must be presented at the

post office under P040 or P700.

Precanceled stamp mail must be

presented at the post office under P023.

E Eligibility

E000 Special Eligibility Standards

* * * * *

E060 Official Mail (Penalty)

* * * * *
37970 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

5.0 SERVICES, CLASSES, RATES,

PREPARATION, AND DETENTION

* * * * *

5.3 Basic Preparation

[Revise 5.3d to incorporate the new 13-

ounce weight limit for First-Class Mail

as follows:]

Penalty mail must:

* * * * *

d. Be endorsed for class or rate except

for single-piece rate First-Class Mail not

exceeding 13 ounces and single-piece

rate Parcel Post. All mail with penalty

mail stamps, other than First-Class Mail

weighing 13 ounces or less, must be

marked to show the class at which it is

mailed.

* * * * *

12.0 PENALTY MERCHANDISE

RETURN SERVICE

12.1 Description

[Amend 12.1 by inserting ‘‘(B)’’ and by

removing ‘‘Single-Piece Standard Mail’’

to read as follows:]

Merchandise return service allows a

merchandise return permit holder to

authorize individuals and organizations

to send single-piece First-Class Mail

(including Priority Mail) and singlepiece Standard Mail (B) (Parcel Post,

Special Standard Mail, and Bound

Printed Matter) to the permit holder.

The permit holder pays the return

postage and fees.

* * * * *

E 100 First-Class Mail

E110 Basic Standards

* * * * *

4.0 FEES

4.1 Presort Mailing

[Amend the first sentence of 4.1 to

delete the reference to Presorted Priority

Mail to read as follows:]

A First-Class Mail presort mailing fee

must be paid once each 12-month

period at each office of mailing by any

person or organization entering mailings

at automation or Presorted First-Class

Mail rates. Payment of one fee allows a

mailer to enter mail at both those rates.

Persons or organizations paying this fee

may enter mail of their clients as well

as their own mail. The fee may be paid

in advance only for the next year and

only during the last 30 days of the

current service period. The fee charged

is that which is in effect on the date of

payment.

* * * * *

E120 Priority Mail

1.0 BASIC STANDARDS

1.1 Description

[Revise 1.1 to reflect the new maximum

weight of First-Class Mail to read as

follows:]

Priority Mail is First-Class Mail

weighing more than 13 ounces and, at

the mailer’s option, any other mail

matter (including regular First-Class

Mail) weighing 13 ounces or less.

Priority Mail rates are based on zone

and/or weight.

* * * * *

[Delete current 1.4, renumber current

2.2 as new 1.4 to read as follows:]

1.4 Marking

The marking ‘‘Priority’’ or ‘‘Priority

Mail’’ must be placed prominently on

the address side of each piece of Priority

Mail.

[Amend 2.0 to read as follows:]

2.0 RATES

2.1 Application

Priority Mail rates apply to pieces

meeting the standards in 1.0.

2.2 Flat Rate Envelope

Any amount of material that can be

mailed in the special flat rate envelope

available from the USPS is subject to the

2-pound Priority Mail rate, regardless of

the weight of the material placed in the

envelope.

2.3 Balloon Rate

Items weighing less than 15 pounds

but measuring more than 84 inches in

combined length and girth are charged

a minimum rate equal to that for a 15-

pound parcel for the zone to which it is

addressed.

2.4 Keys and Identification Devices

Keys and identification devices

(identification cards or uncovered

identification tags) that weigh more than

13 ounces but not more than 2 pounds

are returned at the 2-pound Priority

Mail rate plus a $0.30 fee if they bear,

contain, or have securely attached the

name and complete address of a person,

organization, or concern, with

instructions to return the piece to that

address and a statement guaranteeing

payment of postage due on delivery.

[Delete current 3.0 pertaining to

Presorted Priority Mail.]

E130 Nonautomation Rates

1.0 BASIC STANDARDS

1.1 All Pieces

[Revise 1.1 to reflect the new maximum

weight for First-Class Mail to read as

follows:]

All pieces of nonautomation FirstClass Mail must:

a. Meet the basic standards for FirstClass Mail in E110.

b. Weigh 13 ounces or less.

c. Bear a delivery address.

d. Meet the applicable documentation

and postage payment standards in P012,

P013, and P100.

* * * * *

[Delete 1.3.]

2.0 SINGLE–PIECE RATE

[Revise 2.1, renumber 2.2 as 2.3, and

insert new 2.2 to read as follows:]

2.1 Rate Application

The single-piece rates for First-Class

Mail are applied as follows:

a. The card rate applies to a card

meeting the applicable standards in

C100 that is not eligible for or claimed

at the Presorted rate, an automation rate,

or a qualified business reply mail

(QBRM) rate.

b. The letter rate applies to any other

First-Class Mail (letter, flat, and parcel)

weighing 13 ounces or less that is not

eligible for and claimed at the card rate,

the Presorted rate, an automation rate, a

qualified business reply mail (QBRM)

rate, or required to be paid at a rate for

keys and identification devices.

2.2 Keys and Identification Devices

Keys and identification devices

(identification cards or uncovered

identification tags) that weigh not more

than 13 ounces are mailed at the

applicable single-piece letter rate, plus a

$0.30 fee, and if applicable, the

nonstandard surcharge. The keys and

identification devices must bear,

contain, or have securely attached, the

name and complete address of a person,

organization, or concern, with

instructions to return the piece to that

address and a statement guaranteeing

payment of postage due on delivery.

* * * * *

[Insert new 4.0 to read as follows:]

4.0 NONSTANDARD SURCHARGE

Single-piece (including keys and

identification devices) and Presorted

First-Class Mail are subject to the

applicable nonstandard surcharge in

R100 if they are not mailed at the card

rate, weigh 1 ounce or less, and meet the

definition of nonstandard mail in C100.

* * * * *

[Insert new E150 to read as follows:]
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37971

E150 Qualified Business Reply Mail

(QBRM) Rates

1.0 BASIC STANDARDS

1.1 Description

Qualified Business Reply Mail

(QBRM) is First-Class Mail that:

a. Is letter-size and is prepared to

meet the automation compatibility

requirements in C810 (except 7.1).

b. Meets all the Business Reply Mail

(BRM) standards in S922.

c. Has postage and BRM per-piece fees

paid through a business reply mail

advance deposit account.

d. Is authorized to mail at QBRM rates

and fees under 2.0. During the

authorization process, the mailer is

assigned a unique ZIP+4 code for each

rate category of QBRM to be returned

under the system (one for card-rate

pieces, one for letter-size pieces

weighing 1 ounce or less, and one for

letter-size pieces weighing over 1 ounce

up to and including 2 ounces).

e. Bears the unique ZIP+4 code

assigned during the application process

in the address of each piece distributed.

The ZIP+4 code on each piece must be

the proper one assigned to the rate

category of the piece on its return. The

ZIP+4 codes assigned for this program

must be used only on the organization’s

appropriate QBRM pieces.

f. Bears the correct barcode that

corresponds to the unique ZIP+4 code

in the address on each piece distributed.

The barcode must be correctly prepared

under C840 and S922.5.

g. Bears a properly prepared facing

identification mark (FIM) C on each

piece distributed.

2.0 AUTHORIZATION

To participate in QBRM, the mailer

must submit a written request to open

a QBRM account to the postmaster or

business mail entry manager at the post

office to which the pieces are to be

returned. If the mailer’s request is

approved, the USPS issues the mailer an

authorization letter and instructions on

how to prepare BRM, including the

ZIP+4 codes to be used. The mailer

must have a valid BRM permit and pay

the annual accounting fee to participate

in QBRM. Preproduction samples, if

provided with the request, are reviewed

by the USPS for compliance with the

relevant standards. Any BRM approved

under the former Business Reply Mail

Accounting System need not make

reapplication to qualify for QBRM.

3.0 RATES AND FEES

3.1 Rates

The single-piece rates for QBRM FirstClass Mail are applied to each returned

piece as follows:

a. The QBRM rate for cards in R100

applies to a card meeting the applicable

standards in 1.0 and C100.

b. The QBRM rate for letters in R100

applies to a letter meeting the applicable

standards in 1.0 that is not eligible for

and claimed at the QBRM rate for cards.

3.2 Fees

The following fees apply to QBRM

First-Class Mail:

a. The annual BRM permit fee in S922

and R900.

b. The annual BRM accounting fee in

S922 and R900.

c. The QBRM fee in R900 for each

returned piece.

E200 Periodicals

E210 Basic Standards

E211 All Periodicals

* * * * *

14.0 BASIC RATE ELIGIBILITY

* * * * *

14.4 Copies Mailed by Public

[Amend 14.4 by adding ‘‘Priority’’ and

‘‘(B)’’ to read as follows:]

The applicable single-piece FirstClass, Priority, or Standard Mail (B) rate

is charged on copies of publications

mailed by the general public (i.e., other

than publishers or registered news

agents) and on copies returned to

publishers or news agents.

* * * * *

E230 Nonautomation Rates

1.0 BASIC INFORMATION

* * * * *

1.3 ZIP Code Accuracy

[In the first sentence, change ‘‘3/5’’ to

‘‘5-digit, 3-digit,’’ to read as follows:]

All 5-digit ZIP Codes in addresses on

pieces claimed at the 5-digit, 3-digit, or

basic rates must be verified and

corrected within 12 months before the

mailing date by a USPS-approved

method. * * *

* * * * *

[Replace current 3.0 through 5.0 with

new 3.0 through 5.0 to read as follows:]

3.0 5-DIGIT RATES

Subject to M200, 5-digit rates apply

to:

a. Letter-size pieces in 5-digit

packages of six or more pieces each,

placed in 5-digit trays.

b. Flat-size pieces in 5-digit packages

of six or more pieces each, placed in 5-

digit sacks or palletized under M045.

4.0 3-DIGIT RATES

Subject to M200, 3-digit rates apply

to:

a. Letter-size pieces in 5-digit and 3-

digit packages of six or more pieces

each, placed in 3-digit trays.

b. Flat-size pieces in 5-digit and 3-

digit packages of six or more pieces

each, placed in 3-digit sacks or

palletized under M045.

5.0 BASIC RATES

Basic rates apply to pieces prepared

under M200 that are not claimed at

carrier route, 5-digit, or 3-digit rates.

6.0 WALK-SEQUENCE DISCOUNTS

* * * * *

6.4 Density Standards

[Revise 6.4b, renumber 6.4c through

6.4d as 6.4d through 6.4e, insert new

6.4c, and revise renumbered 6.4e to read

as follows:]

Walk-sequence rate mailings are

subject to these density standards:

* * * * *

b. Except under 6.4c, at least 125

walk-sequenced addressed pieces must

be prepared for each carrier route

receiving mail claimed at the high

density rate. Mail for carrier routes of

124 or fewer possible deliveries can

qualify for the high density rate if there

are at least 125 addressed pieces for the

route, or if pieces are addressed to every

possible delivery on the route. This mail

may also qualify for the saturation rate,

subject to 6.4e. In-County rate pieces

may also qualify for high density rates

under 6.4c.

c. Mail may qualify for In-County high

density rates when there are addressed

pieces for a minimum of 25% of the

total active possible deliveries on a

carrier route. If a route contains

addresses both within and outside the

county, the number of pieces addressed

to the entire carrier route will be used

to determine if the 25% requirement has

been met. However, for such carrier

routes meeting the 25% requirement,

only the pieces for that carrier route that

are addressed to addresses within the

county in which the original entry is

located may qualify for the In-County

high density rates.

* * * * *

e. More than one addressed piece per

delivery address may be included in a

high density rate mailing and may be

counted for the density standard, in

6.4b, for the high density rate. Only one

piece per delivery address may be

counted toward the density standards
37972 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

for high density in 6.4c and for the

saturation rate in 6.4d.

7.0 COMBINING MULTIPLE

PUBLICATIONS OR EDITIONS

* * * * *

7.4 Documentation Elements

[Amend the first sentence of 7.4 to read

as follows:]

Presort documentation required under

P012 also must show the total number

of addressed pieces and copies of each

publication or edition mailed to each

carrier route, 5-digit, and 3-digit

destination. * * *

* * * * *

E240 Automation Rates

* * * * *

2.0 RATE APPLICATION

[Replace current 2.1 through 2.3 with

new 2.1 through 2.3 to read as follows:]

2.1 5-Digit Rates

Subject to M200, 5-digit automation

rates apply to:

a. Letters. 5-digit rates apply to groups

of 150 or more pieces to the same 5-digit

or 5-digit scheme placed in a 5-digit or

5-digit scheme tray or trays prepared

under M810. (Preparation to qualify for

the 5-digit rate is optional, and if

performed, need not be done for all 5-

digit or 5-digit scheme destinations.)

b. Flats. 5-digit rates apply to pieces

in 5-digit packages of six or more pieces

each, prepared under M820 or M045.

2.2 3-Digit Rates

Subject to M200, 3-digit automation

rates apply to:

a. Letters. 3-digit rates apply to groups

of 150 or more pieces to the same 3-digit

or 3-digit scheme placed in a 3-digit/

scheme tray or trays under M810.

b. Flats. 3-digit rates apply to pieces

in 3-digit packages of six or more pieces

each, prepared under M820 or M045.

2.3 Basic Rates

Subject to M200, basic automation

rates apply to:

a. Letters. Basic rates apply to pieces

prepared under M810 that are not

claimed at 5-digit or 3-digit rates.

b. Flats. Basic rates apply to pieces

prepared under M820 or M045 that are

not claimed at 5-digit or 3-digit rates.

* * * * *

E600 Standard Mail

E610 Basic Standards

E611 All Standard Mail

1.0 BASIC INFORMATION:

* * * * *

1.8 Documentation

[Amend the reference to single-piece

rate mail to specify single-piece

Standard Mail (B) as follows:]

A postage statement, completed and

signed by the mailer, using the correct

USPS form or an approved facsimile,

must be submitted with each mailing

except for single-piece rate Standard

Mail (B) mailings in which the correct

postage is affixed to each piece.

Additional supporting documentation

may be required by the standards for the

rate claimed or postage payment method

used.

E612 Additional Standards for

Standard Mail (A)

* * * * *

[Amend the heading of 4.0 by removing

‘‘BULK’’ to read as follows:]

4.0 RATES

4.1 General Information

[Revise the section numbers and the

names of nonautomation rates and

remove information about special

services to read as follows:]

All Standard Mail (A) rates are bulk

rates (sometimes referred to as presort

rates). Bulk rates apply to mailings

meeting the basic standards in E611 and

the corresponding standards for

Enhanced Carrier Route, automation,

Presorted, and destination entry in

E620, E640, and E650 as appropriate for

the rate claimed. Nonprofit rates may be

used only by organizations authorized

by the USPS under E670. Not all

processing categories qualify for every

bulk rate.

4.2 Minimum Per-Piece Rates

[In the first sentence, change

‘‘nonautomation’’ to ‘‘Presorted’’ and

amend the weight breakpoints for the

minimum per-piece rates as follows:]

The minimum per piece rates (i.e., the

minimum postage that must be paid for

each piece) apply to Enhanced Carrier

Route rate pieces weighing no more

than 0.2066 pound rounded (3.3062

ounces rounded); Regular Presorted and

automation rate pieces weighing no

more than 0.2068 pound rounded

(3.3087 ounces rounded); Nonprofit

Enhanced Carrier Route rate pieces

weighing no more than 0.2069 pound

rounded (3.3103 ounces rounded); and

Nonprofit Presorted and automation rate

pieces weighing no more than 0.2055

pound rounded (3.2873 ounces

rounded). * * *

* * * * *

4.6 Exception

[Amend 4.6 by revising the second

sentence to read as follows:]

When the postage computed at the

bulk Standard Mail (A) rates is higher

than a Standard Mail (B) rate for which

the matter and the mailing could qualify

except for its weight, the Standard Mail

(B) rate may be paid without adding

needless weight. When the Standard

Mail (B) rate is paid, the pieces must

bear the rate marking appropriate for the

Standard Mail (B) rate at which postage

is paid. All other standards for bulk

Standard Mail (A) apply, including mail

preparation.

* * * * *

4.9 Preparation

[Amend 4.9b to read as follows:]

Each bulk rate mailing is subject to

these general standards:

* * * * *

b. Each mailing must contain at least

200 pieces or 50 pounds of pieces. See

E620.1.2 for volume requirement

eligibility unique to Presorted Standard

rate mailings. Other volume standards

also can apply, based on the rate

claimed.

* * * * *

[Add new 4.10 as follows:]

4.10 Special Services

Bulk rate Standard Mail (A) may not

use certified, collect on delivery (COD),

insurance, registered, return receipt,

return receipt for merchandise, or

special handling.

* * * * *

[Revise the title of E620. Delete current

1.0. Move current E620.2.0 through 5.7

into E630. Renumber current E630.1.0

through E630.2.9 as E620.1.0 through

E620.2.9. Renumber E620.1.2 as

E620.1.5; renumber E620.1.3 as

E620.1.4; add new E620.1.2,E620.1.3,

E620.1.6, and E620.2.10; and revise to

read as follows:]

E620 Nonautomation Standard Mail

(A) Rates

1.0 PRESORTED REGULAR AND

NONPROFIT RATES

1.1 Basic Standards

All pieces in a Presorted Regular or

Presorted Nonprofit Standard Mail (A)

mailing must:

a. Meet the basic standards for

Standard Mail in E611 and E612.

b. Except as provided in 1.2, be part

of a single mailing of at least 200 pieces

or 50 pounds of pieces qualifying for

Presorted Standard Mail (A). Regular

and Nonprofit mailings must meet

separate minimum volumes.

c. Bear a delivery address that

includes the correct ZIP Code or ZIP+4

code, unless an alternative address

format is used subject to A040.
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37973

Upgradable pieces are subject to

additional standards in M610. Pieces

prepared with detached address labels

are subject to additional standards in

A060.

d. Be marked, sorted, and

documented as specified in M610.

1.2 Residual Volume Requirement

Pieces in an Enhanced Carrier Route

rate mailing that has separately met a

200 piece or 50 pound minimum

quantity requirement may be counted

toward the minimum quantity

requirement for a Presorted rate mailing,

provided that the Enhanced Carrier

Route rate mailing and the Presorted

rate mailing are part of the same mailing

job and are reported on the same

postage statement. Likewise, pieces in

an automation rate mailing that has

separately met a 200 piece or 50 pound

minimum quantity requirement may be

counted toward the minimum quantity

requirement for a Presorted rate mailing,

provided that the automation rate

mailing and the Presorted mailing are

part of the same mailing job and are

reported on the same postage statement.

Pieces mailed at Presorted Standard

Mail (A) rates must not be counted

toward the minimum volume

requirements for an Enhanced Carrier

Route rate or an automation rate

mailing.

1.3 Residual Mail Subject to FirstClass or Priority Mail Rates

Pieces prepared as Standard Mail (A)

(i.e., bear Standard Mail (A) rate

markings, ancillary service markings,

etc.) that do not qualify for Enhanced

Carrier Route, automation, or Presorted

Standard Mail (A) rates are subject to

the single-piece First-Class or Priority

Mail rates as applicable for the weight

of the mailpiece. Metered pieces

weighing over 13 ounces, but less than

16 ounces that do not qualify for

Standard Mail (A) rates, and any

mailpieces that do not qualify for

Standard Mail (A) rates for which FirstClass or Priority Mail service is desired,

must be re-enveloped or otherwise

prepared so that they do not bear

Standard Mail (A) markings,

endorsements and ACS codes, and must

bear the proper First-Class Mail or

Priority Mail rate markings, ancillary

service endorsements, and ACS codes.

Mailers who have pieces (other than

metered pieces weighing over 13

ounces, but less than 16 ounces) that do

not qualify for Standard Mail (A) rates,

but that are prepared as Standard Mail

(A), and who do not desire to receive

First-Class Mail or Priority Mail service

for those pieces, may enter their

mailpieces ‘‘as is’’ (i.e., bearing the

Standard Mail (A) markings and

endorsements), provided the

requirements in P100 are met.

1.4 ZIP Code Accuracy

All 5-digit ZIP Codes included in

addresses on pieces claimed at regular

Presorted and Nonprofit Presorted rates

must be verified and corrected within

12 months before the mailing date,

using a USPS-approved method. The

mailer must certify that this standard

has been met when the corresponding

mail is presented to the USPS. This

standard applies to each address

individually, not to a specific list of

mailing. An address meeting this

standard may be used in mailings at any

other rates to which the standard

applies during the 12-month period

after its most recent update.

1.5 Presorted Rates

Presorted Regular or Nonprofit

Standard Mail (3⁄5 and basic) rates apply

to Regular or Nonprofit Standard Mail

letters, flats, and machinable and

irregular parcels weighing less than 16

ounces, that are prepared under M610

or palletized under M045. Basic rates

apply to pieces that do not meet the

standards for the 3⁄5 rates described

below. Basic rate and 3⁄5 rate pieces

prepared as part of the same mailing are

subject to a single minimum volume

standard. Pieces that do not qualify for

the 3⁄5 rate must be paid at the basic rate

and prepared accordingly. Pieces may

qualify for the 3⁄5 rate if they are

presented:

a. In quantities of 150 or more lettersize pieces for a single 3-digit area,

prepared in 5-digit or 3-digit packages of

10 or more pieces each and placed in 5-

digit or 3-digit trays.

b. In quantities of 150 or more

upgradable letter-size pieces (as defined

in M610) for a single 3-digit area and

placed in 5-digit or 3-digit trays.

c. In a 5-digit or 3-digit package of 10

or more flat-size pieces and placed in a

5-digit or 3-digit sack containing at least

125 pieces or 15 pounds of pieces.

d. In a 5-digit or 3-digit package of 10

or more flat-size pieces palletized under

M045.

e. In a 5-digit, destination ASF (if

required), or destination BMC sack

containing at least 10 pounds of

machinable parcels. (The 3⁄5 rates are

available only if all possible 5-digit

sacks are prepared.)

f. On a 5-digit, destination ASF (if

required), or destination BMC pallet of

machinable parcels. (The 3⁄5 rates are

available only if all possible 5-digit

pallets are prepared.)

g. In a 5-digit or 3-digit sack of

irregular parcels containing at least 125

pieces or 15 pounds of pieces.

1.6 Residual Shape (Parcel) Surcharge

Presorted Standard Mail that is

prepared as a parcel, or is not letter-size

or flat-size as defined in C050, is subject

to the residual shape surcharge.

2.0 ENHANCED CARRIER ROUTE

RATES

2.1 All Pieces

All pieces in an Enhanced Carrier

Route Standard Mail mailing (letters,

flats, or irregular parcels, including

merchandise samples distributed with

detached address labels) must:

a. Meet the basic standards for

Standard Mail in E611 and E612.

b. Be part of a single mailing of at

least 200 pieces or 50 pounds of pieces

of Enhanced Carrier Route Standard

Mail, except that automation basic

carrier route rate pieces are subject to a

separate 200-piece/50-pound minimum

volume standard and may not be

included in the same mailing as other

Enhanced Carrier Route mail. Regular

and Nonprofit mailings must meet

separate minimum volumes.

c. Be sorted to carrier routes, marked,

and documented under M045 (if

palletized) or M620.

2.2 Flats and Merchandise Samples

Enhanced Carrier Route rate mail may

not be more than 11–3⁄4 inches high, 14

inches long, or 3⁄4-inch thick.

Merchandise samples with detached

address labels may exceed these

dimensions if the labels meet the

standards in A060.

2.3 Preparation

Preparation to qualify for any of the

Enhanced Carrier Route rates is optional

and need not be performed for all carrier

routes in a 5-digit area. An Enhanced

Carrier Route mailing may include

pieces at basic, high-density, and

saturation Enhanced Carrier Route rates.

Automation basic carrier route rate

pieces must be prepared as a separate

mailing, subject to the eligibility

standards in E640.

2.4 Carrier Route Information

Except for mailings prepared with a

simplified address under A040, carrier

route codes must be applied to mailings

using CASS-certified software and the

current USPS Carrier Route Information

System (CRIS) scheme, hard copy CRIS

files, or another AIS product containing

carrier route information, subject to

A930 and A950. Carrier route

information must be updated within 90

days before the mailing date.
37974 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

2.5 Sequencing

Basic carrier route rate mail must be

prepared either in carrier walk sequence

or in line-of-travel (LOT) sequence

according to LOT schemes prescribed by

the USPS (see M050). High-density and

saturation rate mailings must be

prepared in carrier walk sequence

according to schemes prescribed by the

USPS.

2.6 Addressing

Saturation rate mail may be prepared

with detached address labels, subject to

A060, or with an alternative addressing

format, subject to A040. High-density

pieces must have a complete delivery

address or an address in occupant or

exceptional format. Saturation pieces

addressed for delivery on a city route

must have a complete delivery address

or an address in occupant or exceptional

format, except that official mail from

certain government entities also may

use the simplified format. Saturation

pieces for delivery on rural or highway

contract routes, or through general

delivery or a post office box, must have

a complete delivery address or an

alternative address format.

2.7 Density

High-density and saturation rate

mailings are subject to these density

standards:

a. There is no minimum volume per

5-digit ZIP Code delivery area. Pieces

need not be sent to all carrier routes

within a 5-digit delivery area.

b. For the high-density rate, at least

125 pieces must be prepared for each

carrier route for which that discount is

claimed, except that fewer pieces may

be prepared and the high-density rate

may be claimed for carrier routes of 124

or fewer possible deliveries if a piece is

addressed to every possible delivery on

the route. Multiple pieces per delivery

address can count toward this density

standard.

c. For the saturation rate, pieces must

be addressed either to 90% or more of

the active residential addresses or to

75% or more of the total number of

active possible delivery addresses,

whichever is less, on each carrier route

receiving this mail, except that mail

addressed in the simplified address

format must meet the 100% coverage

standard in A040. Multiple pieces per

delivery address do not count toward

this delivery standard. Sacks with fewer

than 125 pieces and less than 15 pounds

of pieces may be prepared to a carrier

route when the saturation rate is

claimed for the contents and the

applicable density standard is met.

2.8 Basic Rates

Basic (nonautomation) carrier route

rates apply to each piece that is sorted

under M620 into the corresponding

qualifying groups:

a. Letter-size pieces in a full carrier

route tray, or in a carrier route package

of 10 or more pieces placed in a 5-digit

carrier routes or 3-digit carrier routes

tray.

b. Flat-size pieces in a carrier route

package of 10 or more pieces palletized

under M045, or placed in a carrier route

sack containing at least 125 pieces or 15

pounds of pieces or in a 5-digit carrier

routes sack.

c. Irregular parcels (merchandise

samples prepared with detached

address labels under A060) in a carrier

route sack or in a carrier route carton(s)

containing a total of 125 pieces or 15

pounds of pieces, or in a 5-digit carrier

routes sack or carton. (DALs must be in

carrier route packages of 10 or more

pieces and prepared under A060.)

2.9 High-Density and Saturation

High-density and saturation rates

apply to pieces qualified for the basic

rates that also meet the applicable

addressing and density standards in 2.6

and 2.7.

2.10 Residual Shape (Parcel)

Surcharge

Enhanced Carrier Route mail that is

prepared as a parcel, or is not letter-size

or flat-size as defined in C050, is subject

to the residual shape surcharge.

[Revise the title of E630 as follows:]

E630 Standard Mail (B)

[Delete current 630.1 through 630.2.

Insert new 630.1 through 630.5.9, which

combines former E620.2 through E620.5

with former E630.3 and E630.4 to

reorganize and separate standards for

Standard Mail (A) from those for

Standard Mail (B) and to include new

Standard Mail (B) rate categories to read

as follows:]

1.0 PARCEL POST

1.1 Basic Standards

Parcel Post is Standard Mail weighing

16 ounces or more that is not mailed as

Bound Printed Matter, Special Standard

Mail, or Library Mail. Any Standard

Mail (B) matter may be mailed at Parcel

Post rates, subject to the basic standards

in E611 and E613.

1.2 Enclosures

Parcel Post may contain any printed

matter mailable as Standard Mail (A), in

addition to the enclosures and additions

listed in E611.

1.3 Rate Eligibility

There are five Parcel Post rate

categories: Intra-BMC, Inter-BMC,

destination bulk mail center (DBMC),

destination sectional center facility

(DSCF), and destination delivery unit

(DDU). Intra-BMC, Inter-BMC, and

DBMC Parcel Post rates are calculated

based on the zone to which the parcel

is addressed and the weight of the

parcel. DSCF and DDU rates are

calculated based on the weight of the

parcel. Generally, Intra-BMC rates apply

to parcels mailed and delivered within

the same BMC service area and InterBMC rates apply to parcels mailed in

one BMC service area and delivered in

a different BMC service area. Specific

standards for Inter-BMC and Intra-BMC

rates and applicable discounts are

described below. Generally, to qualify

for destination entry rates (DBMC,

DSCF, or DDU), mailers must enter their

parcels at the destination BMC, SCF, or

delivery unit postal facility that will

process or deliver the parcels (see

additional requirements in E652).

Additional requirements for Parcel Post

rates and discounts (other than

destination entry rates) are set forth

below.

a. Intra-BMC rates apply to all Parcel

Post originating and destining in the

service area of the same BMC or ASF.

Intra-BMC rates also apply to Parcel

Post originating and destining in the

same state for Alaska and Hawaii and in

the same territory for Puerto Rico. See

Exhibit 1.3.

b. Inter-BMC rates for machinable

parcels apply to all Parcel Post mail that

weighs 35 pounds or less; is

machinable; originates in the service

area of a BMC/ASF, or in Alaska,

Hawaii, or Puerto Rico, and destinates

outside that area; and is not eligible for

destination entry rates.

c. Inter-BMC rates for nonmachinable

Parcel Post include the nonmachinable

surcharge and apply to all inter-BMC/

ASF Parcel Post mail that weighs more

than 35 pounds or otherwise is

nonmachinable as defined in 1.4;

originates in the service area of a BMC/

ASF, or in Alaska, Hawaii, or Puerto

Rico, and destinates outside that area;

and is not eligible for destination entry

rates.

d. Parcel Post for which OBMC

Presort, BMC Presort, and barcoded

discounts are claimed, and parcel post

which is mailed at a destination entry

rate (DBMC, DSCF, DDU (E652)), must

be part of a mailing of 50 or more Parcel

Post rate pieces. Eligibility for one of

those rates or discounts does not require

a separate 50 qualifying pieces per rate

or per discount. Eligibility for more than
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37975

one of those rates or discounts in the

same Parcel Post mailing is possible,

provided there are a total of at least 50

pieces of mail qualifying for any or all

Parcel Post rates in the mailing and all

other preparation and eligibility

requirements for the rates or discounts

are met.

e. The bulk mail center (BMC) Presort

per-piece discount applies to pieces of

inter-BMC Parcel Post sorted to BMC

destinations under L601 for machinable

pieces and sorted to BMC and ASF

destinations for nonmachinable pieces

under L605. To qualify, machinable

pieces must be placed in pallet boxes on

pallets and nonmachinable pieces must

be placed directly on pallets under

M041 and M045. The mail must be

entered at a postal facility that is not a

BMC and be part of a mailing containing

50 or more Parcel Post rate pieces.

f. The origin bulk mail center presort

(OBMC Presort) per-piece discount

applies to pieces of inter-BMC Parcel

Post sorted to BMC destinations under

L601 for machinable pieces and sorted

to BMC and ASF destinations for

nonmachinable pieces under L605. To

qualify, machinable pieces must be

placed in pallet boxes on pallets and

nonmachinable pieces must be placed

directly on pallets under M041 and

M045. The mail must be entered at a

BMC listed in L601 and be part of a

mailing containing 50 or more Parcel

Post rate pieces.

g. The barcoded discount applies to

Parcel Post machinable parcels (C050)

that each bear a correct, readable

barcode under C850 for the ZIP Code of

the delivery address; are part of a

mailing of 50 or more Parcel Post rate

pieces; are not mailed at the DSCF or

DDU rates; and if claiming the DBMC

rates, are not entered at an ASF. An

exception is that properly prepared

machinable pieces of DBMC rate mail

entered at the Phoenix, AZ, ASF may

claim the barcoded discount because

that facility uses barcode scanning

equipment.

h. Pieces measuring over 108 inches

but not more than 130 inches in

combined length and girth, are mailable

at the applicable oversized Parcel Post

rate.

i. Pieces measuring over 84 inches,

but not more than 108 inches in

combined length and girth and weighing

less than 15 pounds are subject to the

rate equal to that of a 15-pound parcel

for the zone to which the parcel is

addressed.

Exhibit 1.3 BMC/ASF Service Areas

[Renumber and insert former Exhibit

E620.2.4 as Exhibit E630.1.3.]

1.4 Nonmachinable Surcharge

The nonmachinable surcharge applies

only to the items listed in 1.4a through

1.4i if mailed at the Inter-BMC/ASF

Parcel Post rates and no special

handling fee is paid. The

nonmachinable surcharge applies to

items within these categories:

a. A parcel more than 34 inches long,

17 inches wide, 17 inches high, or

weighing more than 35 pounds.

b. A parcel containing more than 24

ounces of liquid in glass containers, or

1 gallon or more of liquid in metal or

plastic containers.

c. An insecurely wrapped or metalbanded parcel.

d. A can (paint, etc.), roll, or tube, or

wooden or metal box.

e. A shrub or tree.

f. A perishable, such as eggs.

g. Books, printed matter, or business

forms weighing more than 25 pounds.

h. A high-density parcel weighing

more than 15 pounds and exerting more

than 60 pounds per-square-foot pressure

on its smallest side.

i. A film case weighing more than 5

pounds or with strap-type closures,

except any film case the USPS

authorizes to be entered as a machinable

parcel under C050 and to be identified

by the words ‘‘Machinable in United

States Postal Service Equipment,’’

permanently attached as a

nontransferable decal in the lower right

corner of the case.

1.5 Fees

Renumber former E620.2.6 as E630.1.5

and revise to read as follows:]

Parcel Post mail is subject to these

fees, as applicable:

a. The fee for mailing at destination

BMC (DBMC), destination sectional

center facility (DSCF), and destination

delivery unit (DDU) Parcel Post rates

must be paid once each 12-month

period at each post office of mailing by

or for any person or organization that

mails at the destination entry rates,

except as provided otherwise for plantverified drop shipments. All destination

entry rates are covered under the

payment of a single annual fee. The fee

may be paid in advance only for the

next year and only during the last 30

days of the current service period. The

fee charged is that which is in effect on

the date of payment (R600).

b. The Parcel Post pickup fee must be

paid every time pickup service is

provided, subject to the corresponding

standards in D010.

2.0 BOUND PRINTED MATTER

2.1 Description and Rate Categories

[Renumber former E620.3.1 as E630.2.1

and revise to include new rate

categories as follows:]

Bound Printed Matter is Standard

Mail weighing at least 1 pound but not

more than 15 pounds and meeting the

standards in E611, E613, and E630.

Bound Printed Matter rates are based on

zones and on the weight of the piece.

The rate categories are as follows:

a. Single-Piece Rate. The single-piece

rate applies to Bound Printed Matter not

mailed at the presorted rate or carrier

route rate.

b. Presorted Rate. The presorted rate

applies to Bound Printed Matter

prepared in a mailing of at least 300

pieces, prepared and presorted as

specified in M045 and M630.

c. Carrier Route Rate. The carrier

route rate applies to Bound Printed

Matter prepared in a mailing of at least

300 pieces presorted to carrier routes,

prepared and presorted as specified in

M045 and M630.

2.2 Characteristics

[Renumber former E620.3.2 as E630.2.2.]

* * * * *

2.3 Combining Pieces

[Renumber former E620.3.3 as E630.2.3.]

* * * * *

2.4 Enclosures

[Renumber former E620.3.4 as E630.2.4.]

* * * * *

[Add new 2.5 to specify barcoded

discount standards as follows:]

2.5 Barcoded Discount

The barcoded discount applies to

machinable parcels (C050) bearing a

correct, readable barcode under C850 for

the ZIP Code shown in the delivery

address that are part of a mailing of at

least 50 Bound Printed Matter pieces,

and are mailed at the single-piece rates

or, under the following conditions,

mailed at the presorted rates. Except for

5-digit bedloaded bundles, presorted

Bound Printed Matter that is prepared

under the machinable parcel

preparation standards in M045 and

M630 is eligible for the barcoded

discount. Bedloaded bundles of

presorted Bound Printed Matter that are

required to be prepared under the

sortation standards for flats and

irregular parcels are not eligible for

barcoded discounts. Carrier route Bound

Printed Matter is not eligible for the

barcoded discount.

[Renumber E630.3.1 as 2.6 and revise to

delete references to E620 to read as

follows:]
37976 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

2.6 Preparation for Presorted Rates

Presorted Bound Printed Matter must

meet the basic standards in 2.1 through

2.5 and the applicable preparation

standards in M630. Mailings may

contain nonidentical-weight pieces only

if the correct postage is affixed to each

piece or if the RCSC serving the post

office of mailing has authorized

payment of postage by permit imprint

under P710, P720, or P730 or M630.8.

Each mailing must contain 300 or more

pieces of presorted Bound Printed

Matter. Insurance, special handling, and

COD services may be used, but selective

use of these services for individual

parcels must be approved by the RCSC.

[Renumber former E630.3.2 as 2.7.]

2.7 Additional Standards for Carrier

Route Rates

Carrier route Bound Printed Matter is

subject to these additional standards:

a. Each mailing must contain 300 or

more pieces sorted under M630 into

groups of at least 10 pieces, 20 pounds,

or 1,000 cubic inches each for the same

carrier route, rural route, highway

contract route, post office box section,

or general delivery unit.

b. Residual pieces (not sorted as

described in 2.7a) do not count toward

the minimum specified in 2.7a, are

ineligible for the carrier route Bound

Printed matter rates, and must have

postage paid at the appropriate

presorted Bound Printed Matter rates.

Residual pieces may be included in a

carrier route Bound Printer Matter rate

mailing and be endorsed ‘‘Carrier Route

Presort’’ or ‘‘CAR–RT SORT.’’ The

number of residual pieces to any single

5-digit ZIP Code area may not exceed

5% of the total qualifying carrier route

pieces addressed to that 5-digit area.

Residual pieces must be separated from

the pieces that qualify for the carrier

route rate and must be prepared under

M630.

c. Subject to A930, the mailer must

apply carrier route codes to mailings

using CASS-certified software and the

current USPS Carrier Route Information

System (CRIS) scheme or another AIS

product containing carrier route

information. The carrier route

information must be updated within 90

days before the mailing date.

[Renumber former E620.4.0 as E630.3.0.]

3.0 SPECIAL STANDARD MAIL

[Renumber former E620.4.1 as E630.3.1

and add rate categories as follows:]

3.1 Qualification

Special Standard Mail is Standard

Mail matter meeting the standards in

E611, E613, and those below. Special

Standard Mail rates are based on the

weight of the piece, without regard to

zone. The rate categories are as follows:

a. Single-Piece Rate. The single-piece

rate applies to Special Standard Mail

not mailed at a 5-digit or BMC rate.

b. Presorted 5-Digit Rate. The 5-digit

rate applies to Presorted Special

Standard Mail mailings of at least 500

pieces and meeting the other

requirements of 4.0 and that are

prepared and presorted to 5-digit

destination ZIP Codes as specified in

M630 or M041 and M045.

c. Presorted BMC Rate. The BMC rate

applies to Presorted Special Standard

Mail mailings of at least 500 pieces and

meeting the other requirements of 4.0

and that are prepared and presorted to

destination bulk mail centers as

specified in M630 or M041 and M045.

[Renumber former E620.4.2 as E630.3.2.]

3.2 Qualified Items

* * * * *

[Renumber former E620.4.3 as E630.3.3.]

3.3 Loose Enclosures

* * * * *

[Renumber former E620.4.4 as E630.3.4.]

3.4 Enclosures in Books

* * * * *

[Insert current E630.4.0. Amend 4.3 by

revising the second sentence and add

new E630.4.7 to read as follows:]

4.0 PRESORTED SPECIAL

STANDARD MAIL

* * * * *

4.3 One Presort Level

A Presorted Special Standard Mail

rate mailing receives only one level of

presort rate. The mailer may, however,

prepare two separate mailings in order

to use both levels of presort rates and

claim them on the same postage

statement. Pieces that do not qualify for

a presort rate must be presented

separately from any presorted rate

mailings, but may be claimed on the

same postage statement as a 5-digit rate

and BMC presort rate mailing.

* * * * *

4.7 Barcoded Discount

The barcoded discount applies to

machinable parcels (C050) mailed at

single-piece rates and Presorted Special

Standard Mail BMC rates that bear a

correct, readable barcode under C850 for

the ZIP Code shown in the delivery

address, and that are part of a mailing

of at least 50 pieces of Special Standard

Mail. The discount does not apply to

pieces mailed at the Presorted Special

Standard Mail 5-digit rates.

[Renumber former E620.5.0 and 5.1 as

E630.5.0 and E630.5.1 to read as

follows:]

5.0 LIBRARY MAIL

5.1 Qualification

Library Mail is Standard Mail matter

meeting the standards in E611, E613,

and those below. Library Mail rates are

based on the weight of the piece,

without regard to zone. The basic rate

category applies to all Library Mail.

[Renumber former E620.5.2 through

E620.5.7 as E630.5.2 through E630.5.7.]

[Insert new 5.8 as follows:]

5.8 Barcoded Discount

The barcoded discount applies to

machinable parcels (C050) of Library

Mail bearing a correct, readable barcode

under C850 for the ZIP Code shown in

the delivery address and that are part of

a mailing of at least 50 Library Mail

pieces.

[Insert new 6.0 to read as follows:]

6.0 BULK PARCEL POST

[Reserved]

[Revise the title of E640 and the first

sentence of E640.1.1 to read as follows:]

E640 Automation Standard Mail (A)

Rates

1.0 REGULAR AND NONPROFIT

RATES

1.1 All Pieces

All pieces in an automation rate

Regular or Nonprofit Standard Mail (A)

mailing must: * * *

* * * * *

E650 Destination Entry

* * * * *

E652 Parcel Post

1.0 BASIC STANDARDS

[Amend 1.1 through 1.4 to add

information on DSCF and DDU

destination entry rates to read as

follows:]

1.1 Definitions

Destination entry discounts apply to

Parcel Post mailings prepared as

specified in M041, M045, and M630 and

addressed for delivery within the

service area of a destination BMC (or

auxiliary service facility), sectional

center facility (SCF), or delivery unit

(DU) where they are deposited by the

mailer. For this standard, the following

destination facility definitions apply:

a. A destination bulk mail center

(DBMC) includes all bulk mail centers

(BMCs) and auxiliary service facilities

(ASFs) under L602, and designated

sectional center facilities (SCFs) under

4.0.

b. A destination sectional center

facility (DSCF) includes all facilities
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37977

listed under L005. Mail that is prepared

on pallets for 5-digit ZIP Codes listed in

Exhibit 5.0 must be entered at the BMC

shown in the exhibit instead of at the

SCF serving the 5-digit ZIP Codes of the

delivery addresses appearing on

mailpieces unless an exception has been

granted under 1.3e.

c. A destination delivery unit (DDU)

is a facility that delivers to the addresses

appearing on the deposited pieces in a

destination entry rate Parcel Post

mailing. Refer to the Drop Shipment

Product maintained by the National

Customer Support Center (NCSC) (see

G043) to determine the location of a 5-

digit delivery facility. There is a charge

for the Drop Shipment Product. When

the Drop Shipment Product shows that

mail for a single 5-digit ZIP Code area

is delivered out of more than one postal

facility, use the facility from which the

majority of city carrier routes are

delivered as the facility at which the

DDU mail must be entered unless the 5-

digit ZIP Code is listed in Exhibit 6.0 or

Exhibit 7.0.

1.2 General

A destination entry mailing is a Parcel

Post mailing that:

a. May be bedloaded, on pallets, or in

pallet boxes on pallets, sacks, or other

authorized containers as specified in 2.0

through 5.0, depending on the facility at

which the pieces are deposited and;

b. Is not plant-loaded.

1.3 DBMC, DSCF, and DDU Rates

For DBMC, DSCF, or DDU rates,

pieces must meet the applicable

standards in 1.0 through 5.0 and meet

the following criteria:

a. Be part of a single mailing of 50 or

more pieces that are eligible for and

claimed at any Parcel Post rate or rates.

b. Be deposited at a destination BMC

(DBMC) or auxiliary service facility, or

other equivalent facility; destination

sectional center (DSCF); or destination

delivery unit (DDU) as applicable for the

rate claimed and as specified by the

USPS.

c. Be addressed for delivery within

the ZIP Code ranges that the applicable

entry facility serves.

d. For destination BMC (DBMC) rates,

be part of a Parcel Post mailing that is

deposited at a BMC or ASF under L602

or other designated facility under 4.0,

addressed for delivery within the ZIP

Code range of that facility and prepared

in accordance with M041 and M045 or

M630.

e. For destination sectional center

facility (DSCF) rates, be part of a Parcel

Post mailing deposited at a designated

SCF facility under L005 (or at a BMC

under Exhibit 5.0); addressed for

delivery within the ZIP Code service

area of that SCF facility under L005 and

prepared in accordance with M041 and

M045, and/or M630. For 5-digit ZIP

Code areas listed under Exhibit 5.0, mail

prepared on pallets must be entered at

the corresponding BMC facility shown

in that Exhibit (not at the SCF) unless

an exception is requested 15 days in

advance of the mailing in writing and

granted by the Area Manager,

Operations Support having jurisdiction

over the BMC and SCF. Exceptions, if

granted, will be for a limited time.

Mailers must not prepare mail on pallets

(including pallet boxes on pallets) for

the DSCF rate if the 5-digit delivery

facility is unable to handle pallets. Refer

to the Drop Shipment Product

maintained by the National Customer

Support Center (NCSC) (see G043) to

determine which 5-digit delivery

facilities can handle pallets (including

pallet boxes on pallets). There is a

charge for the Drop Shipment Product.

When the Drop Shipment Product

shows that mail for a single 5-digit ZIP

Code area is delivered out of more than

one postal facility, use the facility where

the majority of city carrier routes are

located for purposes of determining if

the delivery facility can handle pallets,

unless the 5-digit ZIP Code is listed in

Exhibit 6.0 or Exhibit 7.0. For ZIP Codes

in Exhibits 6.0 and 7.0 use the name of

the facility associated with the 5-digit

ZIP Code on the respective exhibit along

with the Drop Shipment Product to

determine if pallets may be prepared for

one of those 5-digit areas.

f. For destination delivery unit (DDU)

rates, be part of a Parcel Post mailing

prepared in accordance with M041 and

M045 and/or M630 and deposited at a

designated destination delivery unit that

delivers parcels to the addresses

appearing on the deposited pieces.

There is no required minimum number

of pieces that must be deposited for the

DDU rate and no specific preparation

requirements; however, they must be

part of a mailing of at least 50 Parcel

Post rate pieces and must be separated

by 5-digit ZIP Codes. Refer to the Drop

Shipment Product maintained by the

National Customer Support Center

(NCSC) (see G043) to determine the

location of the 5-digit delivery facility

and whether it can handle pallets

(including pallet boxes on pallets).

There is a charge for the Drop Shipment

Product. When the Drop Shipment

Product shows that mail for a single 5-

digit ZIP Code area is delivered out of

more than one postal facility, use the

facility from which the majority of city

carrier routes are delivered as the

facility at which the DDU mail must be

entered and to determine whether that

facility can handle pallets, unless the 5-

digit ZIP Code is listed in Exhibit 6.0 or

Exhibit 7.0. For ZIP Codes in Exhibits

6.0 and 7.0 use the name of the facility

associated with the 5-digit ZIP Code on

the respective exhibit as the facility at

which DDU mail must be entered for

that 5-digit ZIP Code. This facility name

should be used along with the Drop

Shipment Product to determine if that

facility can handle pallets. If a DDU

facility cannot handle pallets, and a

mailer transports mail to the DDU

facility on pallets, the driver will have

to unload the pallets into a container

specified by the delivery unit.

1.4 Postage Payment

Postage payment for DBMC, DSCF,

and DDU rate mail is subject to the same

standards that apply generally to

Standard Mail (B). Except for plantverified drop shipments (see P750) or

metered mail drop shipment (see D072),

the mailer must have a meter license or

permit imprint authorization at the

destination facility parent post office for

mailings deposited for entry at a DBMC

or ASF, at a destination sectional center

facility, or at the parent post office of a

destination delivery unit. Postage and

fees (under E630) are paid to the post

office that verifies the mailings. The

mailer must ensure that Form 8125

accompanies all plant-verified drop

shipments.

[Rename 1.5 to read as follows:]

1.5 BMC as Agent

The DBMC may act as acceptance

agent only for its parent post office (see

Exhibit 1.5) and only if authorized by

Form 4410 for each mailer depositing

DBMC entry rate mail.

[Delete 1.6.]

2.0 PREPARATION

[Amend 2.0 to include new destination

entry rates as follows:]

2.1 Bedloaded Parcels

[Revise 2.1 to limit bedloaded

destination entry mailings to BMCs and

DDUs as follows:]

A mailer may present bedloaded

DBMC parcels if the mailer’s vehicle has

a road-to-bed height of 50 (±2) inches.

If applicable, the mail to be entered at

different destinations must be separated

to prevent mixing of mailings for

deposit at different destinations. DBMC

rate mailings may be bedloaded for

deposit at BMCs/ASFs, and DDU rate

mailings may be bedloaded for deposit

at DDUs. Refer to the Drop Shipment

Product available from the National

Customer Support Center (NCSC) (see

G043) to determine dock requirements
37978 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

for a DDU facility. (There is a charge for

this information.)

2.2 Containers

[Reorganize and revise 2.2 to include

DSCF and DDU mailings and delete use

of BMC over-the-road containers for the

DBMC rate as follows:]

DBMC (if not bedloaded), DDU rate

mailings (if not bedloaded), and all

DSCF mailings must be prepared as

follows:

a. Machinable parcels for which a

DBMC, DSCF, or DDU rate is claimed

must be sacked under M630 or prepared

on pallets under M041 and M045.

b. For DBMC rate mail,

nonmachinable parcels that each weigh

35 pounds or less must be sacked under

M630 if the parcels do not contain

perishables and the size of the parcels

allows a sack to hold at least two pieces.

DBMC rate nonmachinable parcels that

cannot be sacked in this manner or that

weigh more than 35 pounds must be

transported as outside (unsacked)

pieces. If authorized in advance by the

USPS, DBMC rate nonmachinable

parcels may be palletized.

c. DSCF rate mail, if sacked under

M630, must contain at least 7 pieces per

sack or, if the sack is overflow from a

5-digit sack that contains at least 7

pieces it may contain less. DSCF rate

mail, if sacked under M045 as overflow

from a 5-digit pallet that meets the

applicable pallet minimum, may

contain any number of pieces.

Machinable and nonmachinable pieces

may be included in the same sack.

d. For the DSCF rate, 5-digit sacks

may be bedloaded or they may be

placed on SCF pallets that are labeled

and otherwise prepared under M045.

e. For DSCF rate and DDU rate mail,

nonmachinable parcels may be

palletized (including pallet boxes on

pallets). Nonmachinable parcels may be

combined with machinable parcels on

5-digit pallets (including pallet boxes on

pallets) claimed at DSCF or DDU rates

under M041 and M045.

f. For DDU rate mail, there are no

minimums for sacks, pallets, or pallet

boxes on pallets. DDU rate mail must be

separated by 5-digit ZIP Code (even if

bedloaded) and, if placed in sacks or on

pallets (including pallet boxes on

pallets), it must be properly labeled to

the 5-digit ZIP Code. Machinable and

nonmachinable pieces may be included

in the same sack or on the same pallet

(including pallet boxes).

3.0 DEPOSIT

3.1 Freight

Drop shipments are freight until

deposited and accepted as mail at the

destination facility. The mailer may

request use of a numbered PVDS band

seal to secure mailer vehicles

transporting plant-verified drop

shipments.

3.2 Presentation

[Revise to include requirements for

DSCF and DDU destination entry

mailings as follows:]

Destination entry rate mailings must

be verified under a plant-verified drop

shipment authorization by a detached

mail unit (DMU) in the mailer’s plant or

at the origin post office business mail

entry unit (BMEU) serving the mailer’s

plant. They also may be deposited for

verification at a business mail entry unit

located at a destination BMC,

destination sectional center facility, or

other designated destination postal

facility. Only plant-verified drop

shipments may be deposited at a

destination delivery unit not co-located

with a post office or other postal facility

having a business mail entry unit. When

presented to the USPS, destination entry

mailings must meet the following

requirements:

a. Separation by zone for DBMC rate

mailings is required only for permit

imprint mailings of identical-weight

pieces that are not mailed using a

postage payment system under P710,

P720, or P730, or not mailed under

M630.8.0.

b. Each mailing must be separated

from other mailings, and destination

entry rate mailings for deposit at one

destination postal facility must be

separated from mailings for deposit at

other facilities.

c. Mail must be separated from freight

transported on the same vehicle.

d. Each piece of DBMC, DSCF, or

DDU rate Parcel Post must be marked as

specified in M012 and M630.

e. The mailer must ensure that Form

8125 accompanies all plant-verified

drop shipments.

f. If Periodicals mail is on the same

vehicle as Standard Mail (B) the

Periodicals mail should be loaded in the

tail of the vehicle.

[Rename the title of 3.3 to read as

follows:]

3.3 BMC as Agent

The DBMC may verify and accept

mail if authorized by Form 4410 to act

as agent for the parent post office where

the mailer’s account or license is held.

3.4 Appointments

[Revise 3.4 to change and update

appointment procedures as follows:]

a. Except for local mailers under 3.5

and mailings of perishable commodities,

appointments for deposit of destination

entry rate mail at BMCs, ASFs, and

SCFs must be scheduled through the

appropriate appointment control center

at least a day in advance. Same day

appointments may be granted by a

control center on the basis of a

telephone request. All appointments for

BMC loads must be scheduled by the

appropriate BMC control center.

Appointments for SCFs and ASFs must

be scheduled through the appropriate

district control center. Appointments

may be made up to thirty (30) calendar

days prior to a desired appointment

date. Mailers must comply with the

scheduled mail deposit time and

location. The mailer must cancel any

appointment by notifying the

appropriate control center at least a day

in advance of a scheduled appointment

time.

b. Electronic appointments may be

made by mailers/agents using a USPSissued computer log-on ID. Electronic

appointments or cancellations must be

made at least 12 hours prior to the

desired time and date. All information

required by the USPS appointment

system regarding a mailing must be

furnished.

c. For deposit of DDU mailings, an

appointment must be made by

contacting the DDU at least 24 hours in

advance. If the appointment must be

canceled, a mailer must notify the DDU

at least a day in advance of a scheduled

appointment. Mailers desiring

electronic confirmation of DDU mail

entry also must schedule the

appointment through the district control

center. Recurring (standing)

appointments will be allowed if

shipment frequency is weekly or more

often.

d. When Periodicals are transported

together with Standard Mail (A) or (B)

as a mixed load (E250), an appointment

must be obtained for deposit at a

destination entry facility.

* * * * *

3.7 Deposit Conditions

[Revise 3.7a to clarify that rescheduling

is permitted for refused mailings as

follows:]

Deposit of mail also is subject to these

conditions:

a. Destination facilities may refuse

mailings that are unscheduled or late

(i.e., if vehicles arrive more than 2 hours

after the scheduled appointment at

ASFs, BMCs, or SCFs and more than 20

minutes late at delivery units). If a

mailing is refused, a mailer is permitted

to make a new appointment.

* * * * *
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37979

3.8 Vehicle Unloading

[Revise 3.8 to include DSCF and DDU

rate mail as follows:]

Unloading of destination entry

mailings is subject to these conditions:

a. Properly prepared containerized

loads (e.g., pallets) are unloaded by the

USPS at BMCs, ASFs, and SCFs. The

USPS does not unload or permit the

mailer (or mailer agent) to unload

palletized loads that are unstable or

severely leaning or that have otherwise

not maintained their integrity in transit.

b. The driver must unload bedloaded

shipments within 8 hours of arrival at

BMCs, ASFs, and SCFs. Combination

containerized and bedloaded drop

shipment mailings are classified as

bedloaded shipments for unload times.

The USPS may assist in unloading.

c. At delivery units, the driver must

unload all mail, whether bedloaded,

sacked, or palletized (including pallet

boxes on pallets) within 1 hour of

arrival. If pallets (including pallet boxes

on pallets) are stacked, the driver is

required to unload, unstack, and

unstrap them. If a DDU facility cannot

handle pallets, and a mailer transports

mail to the DDU facility on pallets, the

driver must unload the pallets into a

container specified by the delivery unit.

The driver may be required to place

bedloaded pieces in containers provided

by the delivery unit in order to maintain

separation by 5-digit ZIP Codes or to

place containerized mail so as to

maintain the separation of 5-digit ZIP

Codes.

d. When driver unloading is required,

the driver or assistant must stay with

and continue to unload the vehicle once

at the dock.

e. The driver must remove the vehicle

from USPS property after unloading.

The driver and assistant are not

permitted in USPS facilities except the

dock and designated driver rest area.

3.9 Charges

[Revise 3.9 to include all destination

rate mailings as follows:]

The USPS is not responsible for

demurrage or detention charges

incurred by a mailer who presents

destination rate mailings.

3.10 Appeals

Mailers who believe that they are

denied equitable treatment may appeal

to the manager, customer service

(district), responsible for the destination

postal facility.

3.11 Documentation

[Revise 3.11 to include DSCF and DDU

mailings as follows:]

A postage statement must accompany

each destination entry rate mailing. Any

other documentation must be submitted

as required by the standards for the rate

claimed or the postage payment method

used.

* * * * *

[Add 5.0 as follows to provide for

deposit of some DSCF mail at a BMC:]

5.0 DSCF MAIL ENTERED AT A

DESIGNATED BMC

DSCF rate mail prepared on pallets

(including pallet boxes on pallets) that

is for a 5-digit ZIP Code listed in Exhibit

5.0 must be entered at the

corresponding BMC facility listed on

that exhibit instead of at the DSCF

unless an exception has been granted

under 1.3e. Sacked DSCF rate mail for

the 5-digit ZIP Codes in Exhibit 5.0

must be entered at the DSCF.

EXHIBIT E652.5.0, BMC DEPOSIT OF DSCF RATE PALLETS

BMC Destination ZIP code

ATLANTA ........................................ 30006–08, 30, 32–37, 60–69, 71, 80–86, 88–90.

30305–07, 19, 24, 28–29, 38, 40–42, 45–46, 59, 62–63, 66, 76.

31101.

39901.

CHICAGO ........................................ 53140–44.

53401–08.

60016–17, 19, 25, 53, 56, 68, 70, 76–77.

60103, 05, 07, 20–23, 26, 31, 53–54, 60–65, 68, 76, 79, 87, 89, 92–95.

60301–04, 06–99.

60409, 11–12, 15, 22, 25, 30–33, 35–36, 38–41, 46, 53–58, 62, 64–65, 67, 73, 77–78, 82, 90.

60504–07, 15–17, 21–23, 25–26, 40, 42, 63–64, 66–68, 98.

60601, 05, 08–60, 67, 81, 90, 93–94.

60714.

60803–05.

CINCINNATI .................................... None.

DALLAS ........................................... None.

DENVER ......................................... 69190.

80001–19, 32, 40–42, 44, 46–47.

80110–15, 20–29, 50–56, 60–63, 65–67.

80215, 21–22, 24, 26–29, 31–33, 35–37, 51.

80401–19.

80521–28, 53–54.

80631–39.

DES MOINES .................................. 50000–50399, 50900–50999.

DETROIT ......................................... 48007, 15, 21, 25–26, 34,37, 42–46, 66–73, 75–76, 80–84, 86, 89–93,98–99.

48103–04, 06–09, 11–13, 20–28, 30, 34, 41, 50–54, 61–62, 70, 74, 80, 82–88, 92, 95, 97–98.

48192, 95, 97–98.

48204, 20–21, 27–28, 35.

48310–18, 40–43, 97.

GREENSBORO ............................... 27101–02.

27408–10.

27514–16.

27701.
37980 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

EXHIBIT E652.5.0, BMC DEPOSIT OF DSCF RATE PALLETS—Continued

BMC Destination ZIP code

JACKSONVILLE .............................. 31520–25, 27.

32065, 67, 73, 84–86, 91–92, 95.

32173–76.

32205, 07, 10–11, 16, 20–22, 24–25, 30, 36, 38–39, 44–45, 47, 54, 77.

32901–12, 19, 22–32, 34–37, 40–41, 51–56, 58–69, 76–78.

33427–29, 31–34, 60–67, 81, 86–87, 96–98.

33755–67, 70–79.

33880–85.

34101–06, 08–10, 12–14, 16–17, 19–20.

34470–82.

34945–51, 54, 79–82, 94–97.

KANSAS CITY ................................ 64013–15, 50–51, 55–56, 58.

64116–19, 51, 53–54, 57–61, 63–64, 67, 88, 90.

66002, 44–49.

LOS ANGELES ............................... 90220–23, 40–42, 80.

MEMPHIS ........................................ 38018, 88.

38115, 18, 25, 33–35, 38–39, 41, 75, 81, 83–84, 88, 93, 95.

38614.

38732.

MINNEAPOLIS/ST. PAUL ............... None.

NEW JERSEY ................................. None.

PHILADELPHIA ............................... 19001–04, 06–10, 12–18, 20–23, 25–26, 28–41, 43–44, 46–50, 52–53, 61, 63–67, 70, 72–76, 78–91, 93–

96.

19111, 14–16, 19–20, 24, 28, 34–37, 40, 44, 49, 52, 54–55, 60.

PITTSBURGH ................................. None.

ST. LOUIS ....................................... 62002, 40.

62220–23, 26.

63005–06, 11, 17, 21–22, 24, 31–34, 42–45, 74.

63104–41, 43–44, 46–47, 51, 57–58.

63301–04.

SAN FRANCISCO ........................... 93921–23.

94002–03, 10–12, 22–28, 30, 35, 39–43, 59, 61–65, 70, 86–89.

94401–99.

94504, 06, 08, 11–24, 26–29, 33, 35–46, 48, 55–56, 58–63, 67, 70–71, 73–81, 83–85, 89–99.

SEATTLE ........................................ 98002–04, 23, 31, 35, 63–64, 92–93.

SPRINGFIELD ................................ None.

WASHINGTON ................................ None.

6.0 DELIVERY FACILITY

EXCEPTIONS TO THE ‘‘MAJORITY OF

CITY CARRIERS’’ RULE

For ZIP Codes in Exhibit 6.0 use the

name of the facility associated with the

5-digit ZIP Code in that exhibit as the

facility at which DDU rate mail for that

5-digit ZIP Code must be entered, and

for both DDU and DSCF mail, to

determine whether that 5-digit facility

can handle pallets. See 1.1 and 1.3.

Exhibit E652.6.0, Delivery Facility

Exceptions to the ‘‘Majority of City

Carriers’’ Rule

This listing identifies 5-digit ZIP

Codes that are exceptions to the

‘‘majority of city carriers rule’’ which is

used to determine the Standard (B)

parcel facility for a 5-digit ZIP Code in

instances of where a ZIP Code is

delivered by multiple facilities. The

name of the primary facility for parcel

delivery is listed beside each 5-digit ZIP

Code. Additional information about the

facility including drop ship address and

whether the facility can handle a pallet

is included in the Drop Shipment

Product. At a future date this list will be

available in the Drop Shipment Product.

ZIP Code Facility name

ALABAMA:

36130 ..................... Montgomery.

ALASKA:

99701 ..................... Main Office.

99709 ..................... Main Office.

99801 ..................... Mendenhall.

CALIFORNIA:

91941 ..................... La Mesa.

92056 ..................... Oceanside.

92122 ..................... Universal City Annex.

92623 ..................... Harvest Station.

92693 ..................... San Juan Capistrano.

94087 ..................... Sunnyvale.

94304 ..................... Palo Alto.

FLORIDA:

34743 ..................... Buena Ventura

Lakes.

34747 ..................... Celebration.

GEORGIA:

30811 ..................... Keysville.

31704 ..................... Albany.

IOWA:

52401 ..................... Cedar Rapids.

KANSAS:

66044 ..................... Jayhawk.

66226 ..................... Monticello.

66619 ..................... Hicrest.

ZIP Code Facility name

KENTUCKY:

40022 ..................... Simpsonville.

40763 ..................... Williamsburg.

41730 ..................... Hyden.

42338 ..................... Hartford.

LOUISIANA:

70503 ..................... Oil Center.

71201 ..................... Monroe.

MAINE:

04043 ..................... Kennebunk.

04345 ..................... Gardiner.

04402 ..................... Eastern Maine Carrier

Annex.

04769 ..................... Presque Isle.

04841 ..................... Rockland.

MASSACHUSETTS:

02584 ..................... Nantucket.

MINNESOTA:

55369 ..................... Maple Grove.

55378 ..................... Burnsville.

56387 ..................... Waite Park.

MISSOURI:

64113 ..................... Country Club.

MONTANA:

59106 ..................... Billings.

NEW HAMPSHIRE:

03224 ..................... Tilton.

NEW YORK:

14304 ..................... Niagara Falls.

NORTH CAROLINA:
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37981

ZIP Code Facility name

27706 ..................... Durham.

28018 ..................... Forest City.

28309 ..................... Lafayette.

OHIO:

45013 ..................... Hamilton.

45459 ..................... Centerville.

PENNSYLVANIA:

18073 ..................... Red Hill.

18241 ..................... Nuremberg.

19026 ..................... Pilgrim Gardens.

19136 ..................... Holmesburg Carrier

Annex.

RHODE ISLAND:

02842 ..................... Middleton.

SOUTH DAKOTA:

57402 ..................... Aberdeen.

TENNESSEE:

37224 ..................... South.

TEXAS:

75501 ..................... Texarkana.

75903 ..................... Lufkin.

VIRGINIA:

22320 ..................... Alexandria.

ZIP Code Facility name

22405 ..................... Fredericksburg.

23433 ..................... Driver.

23521 ..................... LC Page.

WASHINGTON:

98203 ..................... Claremont.

98324 ..................... Carbonado.

98375 ..................... South Hill Annex.

98387 ..................... Spanaway.

98687 ..................... East Vancouver DDU.

WEST VIRGINIA:

25801 ..................... Beckley.

26302 ..................... Eastpointe.

26330 ..................... Eastpointe.

WISCONSIN:

53703 ..................... Madison.

7.0 DELIVERY FACILITIES

DIFFERENT THAN THOSE IN THE

DROP SHIPMENT PRODUCT

For ZIP Codes in Exhibit 7.0 use the

name of the facility associated with the

5-digit ZIP Code in that exhibit as the

facility at which DDU rate mail for that

5-digit ZIP Code must be entered, and

for both DDU and DSCF mail, to

determine whether that 5-digit facility

can handle pallets. See 1.1 and 1.3.

Exhibit E652.7.0, Delivery Facilities

Different than those in the Drop

Shipment Product

Parcel Post mailings for the ZIP Codes

shown must be deposited at the

facilities listed in order to qualify for

destination delivery unit rates. The

listing identifies 5-digit ZIP codes and

facilities that are different from the ones

indicated in the Drop Shipment Product

for letters and flats. At a future date this

information will be available in the

Drop Shipment Product.

ZIP codes served Destination delivery unit location

ALASKA:

99702 ....................................... Fairbanks—5400 Mail Trail, Fairbanks, AK 99709–9998.

CALIFORNIA:

90223 ....................................... Compton—701 S. Santa Fe Avenue, Compton, CA 90221–9998.

92677 ....................................... Laguna Niguel—29911 Niguel Road, Laguna Beach, CA 92607–9998.

92684 ....................................... Westminster—15080 Goldenwest Circle, Westminister, CA 92685–9998.

FLORIDA:

34278 ....................................... Manasota P&DC—850 Tallevast Road, Sarasota, Florida 34243–3249.

MASSACHUSETTS:

02113, 14, 29, 99 ..................... Boston P&DC—25 Dorchester Avenue, Boston, MA 02205–9998.

02215. Incoming Mail Center—307 Beacham Street,

02144–45 ................................. Chelsea, MA 02150–9998.

MISSISSIPPI:

39563 .............................................. Pascagoula—911 Jackson Avenue, Pascagoula, MS 39567–9998.

MINNESOTA:

55102 ....................................... Saint Paul—180 Kellogg Blvd. E., Saint Paul, MN 55101–9997.

MONTANA:

59401, 04–05, 14 ..................... Great Falls Annex—1409 14th Street SW, Great Falls, MT 59404–9998.

NEW YORK:

10001, 18, 26, 27, 29, 32–35,

40, 43, 60, 81, 87, 90, 95,

98, 99.

New York City—James A. Farley Building, 441 8th Avenue, New York, NY 10001–9998.

10115–23, 99.

10017, 21, 22, 28, 30, 31, 37,

39, 44, 55.

Bronx—East Side Parcel Post Annex, 500 East 132nd Street, Bronx, NY 10454–4619.

10128, 51–55, 62, 65–78.

10002–07, 09–14, 16, 19, 20,

23–25, 36, 38, 41.

New York—Central Parcel Post Facility, 341 9th Avenue, New York, NY 10199–9991.

10103–07, 10, 49, 58.

10210, 56–60, 65, 70, 71, 79,

80–82, 85, 86, 92

10008, 15, 45–48, 80 ............... New York—Church Street Station, 90 Church Street, New York, NY 10007–9998.

10203, 49, 61, 67.

10111, 12, 29, 85 ..................... New York—Times Square Station, 340 W. 42nd Street, New York, NY 10036–9998.

10461 ....................................... Soundview—1687 Gleason Avenue, Bronx, NY 10472–9998.

10463 ....................................... Mott Haven—517 E. 139th Street, Bronx, NY 10454–9998.

14901 ....................................... Elmira P&DC—1580 Sullivan Street, Elmira, NY 14901–9997.

PENNSYLVANIA:

15131–35 ................................. McKeesport—850 Walnut Street, McKeesport, PA 15134.

15122 ....................................... West Mifflin—500 Regis Avenue, Pittsburgh, PA 15236–9998.

15201 ....................................... Bloomfield—5182 Liberty Avenue, Pittsburgh, PA 15224–9998.

15223 ....................................... Glenshaw—1541 Butler Park Road, Pittsburgh, PA 15116–9998.

15225 ....................................... Woods Run Annex—2840 New Beaver Avenue, Pittsburgh, PA 15233–9998.

15240 ....................................... Oakland—347 S. Bouquet Street, Pittsburgh, PA 15213–9998.

15244 ....................................... Greentree—770 Trumbull Drive, Pittsburgh, PA 15220.

17735 ....................................... Canton—55 Troy Street, Canton, PA 17724–9998.
37982 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

E670 Nonprofit Standard Mail

* * * * *

9.0 MAILING WHILE APPLICATION

PENDING

* * * * *

9.2 Postage Record

[Amend 9.2 by removing ‘‘or SinglePiece Standard Mail’’ in the last

sentence to read as follows:]

While an application is pending,

postage must be paid at the applicable

First-Class Mail or Priority Mail rates, or

at the following Standard Mail (A) rates:

regular Enhanced Carrier Route; regular

automation, or regular Presorted. The

USPS records the difference between

postage paid at the regular Standard

Mail (A) rates (Enhanced Carrier Route,

automation and Presorted) and the

postage that would have been paid at

the Nonprofit Standard Mail rates. No

record is kept if postage is paid at FirstClass Mail or Priority Mail rates.

9.3 Refund

[Amend 9.3b by removing ‘‘or SinglePiece Standard Mail’’ to read as

follows:]

If an authorization to mail at

Nonprofit Standard Mail rates is issued,

the mailer may be refunded the postage

paid at that office in excess of the

Nonprofit Standard Mail rate since the

effective date of the authorization. No

refund is made:

* * * * *

b. If postage was paid at First-Class

Mail or Priority Mail rates.

* * * * *

F Forwarding and Related Services

F000 Basic Services

F010 Basic Information

* * * * *

3.0 DIRECTORY SERVICE

[Amend 3.0d by removing ‘‘or SinglePiece Standard Mail’’ to read as

follows:]

USPS letter carrier offices give

directory service to the types of mail

listed below that have an insufficient

address or cannot be delivered at the

address given (the USPS does not

compile a directory of any kind):

* * * * *

d. Parcels mailed at any Standard

Mail (B) rate or endorsed by the mailer.

* * * * *

5.0 CLASS TREATMENT FOR

ANCILLARY SERVICES

5.1 Priority Mail and First-Class Mail

[Insert new sentence before the chart in

5.1 to read as follows:]

Undeliverable Priority Mail and FirstClass Mail (including stamped cards

and postcards) are treated as described

in the chart below. During months 13

through 18, pieces are returned to the

sender with an on-piece address

correction at no charge. Forwarding

address information is not provided for

mail with the exceptional address

format. The Priority Mail portion of a

Priority Mail drop shipment receives the

forwarding, return, and address

correction services described in this

chart. The mail enclosed in a Priority

Mail drop shipment receives the

services appropriate for its class. FirstClass Mail and Priority Mail that bear

Standard Mail (A) markings and

endorsements as permitted in E620.1.3

and P100, receive forwarding, return,

and address correction services for

Standard Mail (A) under 5.3.

* * * * *

5.2 Periodicals

[Amend 5.2e and 5.2g to read as

follows:]

Undeliverable Periodicals

publications (including publications

pending Periodicals authorization) are

treated as described in the chart below

and under these conditions:

* * * * *

e. The publisher may request the

return of copies of undelivered

Periodicals publications by printing the

endorsement ‘‘Address Service

Requested’’ on the envelopes or

wrappers, or on one of the outside

covers of unwrapped copies,

immediately preceded by the sender’s

name, address, and ZIP+4 or 5-digit ZIP

Code. The per piece rate charged for

return is the appropriate single-piece

First-Class Mail or Priority Mail rate as

applicable for the weight of the piece.

When the address correction is provided

incidental to the return of the piece,

there is no charge for the correction.

This endorsement obligates the

publisher to pay return postage.

* * * * *

g. Periodicals matter is forwarded

only to domestic addresses.

[Amend the ‘‘Address Service

Requested’’ portion of 5.2g (chart) to

read as follows:]

Mailer endorsement USPS action on UAA pieces

‘‘Address Service Requested’’ 1.First 60 days: piece forwarded; no charge.

After 60-day period, or if undeliverable: piece returned with address correction or reason for nondelivery attached;

single-piece First-Class or Priority Mail rate as applicable for weight of piece charged.

‘‘Forwarding Service Requested’’.Not available for Periodicals.

‘‘Return Service Requested’’ Not available for Periodicals.

‘‘Change Service Requested’’.Not available for Periodicals.

No endorsement 1 ................. First 60 days: piece forwarded; no charge.

After 60-day period, or if undeliverable: separate address correction or reason for nondelivery provided; address

correction fee charged; piece disposed of by USPS.

1Valid for all pieces, including Address Change Service (ACS) participating pieces.

5.3 Standard Mail (A)

[Amend 5.3 by deleting 5.3a and

renumbering 5.3b through 5.3i as 5.3a

through 5.3h, respectively. Revise

renumbered 5.3a, 5.3b, and 5.3f through

5.3h to read as follows:]

Undeliverable Standard Mail (A) is

treated as described in the chart below

and under these conditions:

a. Mail that qualifies for a single-piece

Special Standard or Library Mail

Standard Mail (B) rate under the

applicable standards is forwarded and

returned at that rate, if the mailer’s

endorsement includes the name of the

applicable Standard Mail (B) rate.

b. Mail that qualifies for Shipper Paid

Forwarding (F020) under the applicable

standards is forwarded at, and (if

necessary) returned at the single-piece

First-Class or Priority Mail rate as

applicable for the weight of the piece.

* * * * *

f. The weighted fee is the appropriate

single-piece First-Class or Priority Mail

rate, as applicable for the weight of the

piece, multiplied by 2.472 and rounded
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37983

up to the next whole cent (if the

computation yields a fraction of a cent).

The weighted fee is computed (and

rounded if necessary) for each piece

individually. Neither the applicable

postage, the factor, nor any necessary

rounding is applied cumulatively to

multiple pieces. The fee is charged

when an unforwardable or

undeliverable piece is returned to the

sender and the piece is endorsed

‘‘Address Service Requested’’ or

‘‘Forwarding Service Requested.’’ These

endorsements obligate the sender to pay

the weighted fee on all returned pieces.

g. Mail that qualifies for Bulk Parcel

Return Service (BPRS) under the

applicable standards in S924 is returned

at the BPRS per piece fee if the mailer

uses one of the endorsements that

includes ‘‘—BPRS.’’

Mailer endorsement USPS action on UAA pieces

‘‘Return Service Requested—BPRS’’.Piece returned with new address or reason for nondelivery attached; only the Bulk Parcel Return Service fee

charged (address correction fee not charged).

‘‘Address Service Requested—BPRS’’.Months 1 through 12: piece forwarded; no charge to addressee; separate ACS notice of new address provided;

ACS address correction fee and postage at single-piece First-Class or Priority Mail rate as applicable for

weight of piece charged via ACS participant code.

Months 13 through 18: piece returned with new address attached; only the Bulk Parcel Return Service fee

charged (address correction fee not charged).

After Month 18, or if undeliverable: piece returned with reason for nondelivery attached; only Bulk Parcel Return

Service fee charged (address correction fee not charged).

h. Standard Mail (A) is forwarded only to domestic addresses.

Mailer endorsement USPS action on UAA pieces

‘‘Address Service Requested’’ 1.Months 1 through 12: piece forwarded; no charge; separate notice of new address provided; address correction

fee charged.

Months 13 through 18: piece returned with new address attached; only weighted fee charged (address correction

fee not charged).

After month 18, or if undeliverable: piece returned with reason for nondelivery attached; only weighted fee

charged (address correction fee not charged).

‘‘Forwarding Service Requested’’.Months 1 through 12: piece forwarded; no charge.

Months 13 through 18: piece returned with new address attached; only weighted fee charged (address correction

fee not charged).

After month 18, or if undeliverable: piece returned with reason for nondelivery attached; only weighted fee

charged (address correction fee not charged).

‘‘Return Service Requested’’ Piece returned with new address or reason for nondelivery attached; only return postage at single-piece FirstClass or Priority Mail rate as applicable for weight of piece charged (address correction fee not charged).

‘‘Change Service Requested’’ 1.Separate notice of new address or reason for nondelivery provided; in either case, address correction fee

charged; piece disposed of by USPS.

No endorsement ................... Piece disposed of by USPS.

1Valid for all pieces, including Address Change Service (ACS) participating pieces.

* * * * *

6.0 ENCLOSURES AND

ATTACHMENTS

[Amend the first sentences of 6.1 and

6.2 to read as follows:]

6.1 Periodicals

Undeliverable Periodicals

publications (including publications

pending Periodicals authorization) with

a nonincidental First-Class Mail

attachment or enclosure are returned at

the single-piece First-Class Mail or

Priority Mail rate as applicable for the

weight of the piece. The weight of the

attachment or enclosure is not included

when computing the charges for return

of the mailpiece. Undeliverable

Periodicals publications (including

publications pending Periodicals

authorization) with an incidental FirstClass Mail attachment or enclosure are

treated as dead mail unless endorsed

‘‘Address Service Requested.’’

6.2 Standard Mail (A)

Undeliverable, unendorsed Standard

Mail (A) with a nonincidental FirstClass Mail attachment or enclosure is

returned at the single-piece First-Class

Mail or Priority Mail rate as applicable

for the weight of the piece. The weight

of the First-Class Mail attachment or

enclosure is not included when

computing the charges for return of the

mailpiece. Undeliverable, unendorsed

Standard Mail (A) with an incidental

First-Class Mail attachment or enclosure

is treated as dead mail.

* * * * *

8.0 DEAD MAIL

8.1 Basic Information

[Amend 8.1 to read as follows:]

Dead mail is matter deposited in the

mail that is or becomes undeliverable

and cannot be returned to the sender

from the last office of address. Every

reasonable effort is made to match

articles found loose in the mail with the

envelope or wrapper from which lost

and to return or forward the articles.

a. Nonmail matter (e.g., wallets and

bank deposits) found in collection boxes

or at other points within USPS

jurisdiction is returned postage due at

the single-piece First-Class Mail or

Priority Mail rate for keys and

identification devices that is applicable

based on the weight of the matter.

* * * * *

F020 Forwarding

* * * * *

2.0 FORWARDABLE MAIL

* * * * *

2.3 Discontinued Post Office

[Amend 2.3 by removing ‘‘and all

Single-Piece Standard Mail’’ to read as

follows:]

All Express Mail, First-Class Mail,

Periodicals, and Standard Mail (B)

addressed to a discontinued post office

may be forwarded without added charge
37984 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

to a post office that the addressee

designates as more convenient than the

office to which the USPS ordered the

mail sent.

2.4 Rural Delivery

[Amend 2.4 by removing ‘‘and all

Single-Piece Standard Mail’’ to read as

follows:]

When rural delivery service is

established or changed, a customer of

any office receiving mail from the rural

carrier of another office may have all

Express Mail, First-Class Mail,

Periodicals, and Standard Mail (B)

forwarded to the latter office for

delivery by the rural carrier without

added charge, if the customer files a

written request with the postmaster at

the former office.

* * * * *

2.6 Mail for Military Personnel

[Amend the first sentence of 2.6 by

removing ‘‘and all Single-Piece

Standard Mail’’ to read as follows:]

All Express Mail, First-Class Mail,

Periodicals, and Standard Mail (B)

addressed to persons in the U.S. Armed

Forces (including civilian employees)

serving where U.S. mail service operates

is forwarded at no added charge when

the change of address is caused by

official orders. * * *

3.0 POSTAGE FOR FORWARDING

* * * * *

3.5 Standard Mail (A)

[Amend the second sentence of 3.5 to

read as follows:]

* * * Shipper Paid Forwarding, used

in conjunction with Address Change

Service (F030), provides mailers of

Standard Mail (A) machinable parcels

an option of paying forwarding postage

at the single-piece First-Class or Priority

Mail rate as applicable for the weight of

the piece. * * *

* * * * *

G The USPS and Mailing Standards

* * * * *

G040 Information Resources

* * * * *

G043 Address List For Correspondence

[Add the following at the end of the

unit:]

Other

AMERICAN STANDARDS INSTITUTE

INC, 11 W 42ND ST, NEW YORK NY

10036–8002, (212) 642–4900

AUTOMATIC IDENTIFICATION

MANUFACTURERS (AIM), 634

ALPHA DR, PITTSBURGH PA 15238–

2802, www.aimusa.org

UNIFORM CODE COUNCIL INC, 8163

OLD YANKEE RD STE J, DAYTON

OH 45458–1839

* * * * *

L Labeling Lists

* * * * *

[Delete the heading ‘‘L100 First-Class

Mail’’ and labeling list L102.]

L600 Standard Mail

* * * * *

[Insert new labeling list L605 as

follows:]

L605 BMCs—Nonmachinable Parcel

Post

Mailers preparing BMC Presort and

OBMC Presort Parcel Post mailings of

nonmachinable parcels must sort the

parcels and label pallets according to

this list.

Column A—destination ZIP codes Column B—label to

005–007, 009, 068–079, 085–098, 100–119, 124–127, 340 ............................................................................ BMC NEW JERSEY NJ 00102

006–009 .............................................................................................................................................................. SCF SAN JUAN PR 006 1

008 ...................................................................................................................................................................... BMC NEW JERSEY NJ 00102 2

008 ...................................................................................................................................................................... BMC JACKSONVILLE FL 32099 3

010–067, 120–123, 128, 129 ............................................................................................................................. BMC SPRINGFIELD MA 05500

130–136, 140–149 ............................................................................................................................................. ASF BUFFALO NY 140

150–168, 260–266, 439–447 ............................................................................................................................. BMC PITTSBURGH PA 15195

080–084, 137–139, 169–199 ............................................................................................................................. BMC PHILADELPHIA PA 19205

200–212, 214–239, 244, 254, 267, 268 ............................................................................................................. BMC WASHINGTON DC 20499

240–243, 245–249, 270–297, 376 ..................................................................................................................... BMC GREENSBORO NC 27075

298, 300–312, 317–319, 350–352, 354–368, 373, 374, 377–379, 399 ............................................................ BMC ATLANTA GA 31195

299, 313–316, 320–339, 341, 342, 344, 346, 347, 349 .................................................................................... BMC JACKSONVILLE FL 32099

369–372, 375, 380–397, 700, 701, 703–705, 707, 708, 713, 714, 716, 717, 719–729 ................................... BMC MEMPHIS TN 38999

250–253, 255–259, 400–418, 421, 422, 425–427, 430–433, 437, 438, 448–462, 469–474 ............................ BMC CINCINNATI OH 45900

434–436, 465–468, 480–497 ............................................................................................................................. BMC DETROIT MI 48399

500–516, 520–528, 612, 680, 681, 683–689 ..................................................................................................... BMC DES MOINES IA 50999

498, 499, 540–551, 553–564, 566 ..................................................................................................................... BMC MPLS/ST PAUL MN 55202

570–577 .............................................................................................................................................................. ASF SIOUX FALLS SD 570

565, 567, 580–588 ............................................................................................................................................. ASF FARGO ND 580

590–599, 821 ..................................................................................................................................................... ASF BILLINGS MT 590

463, 464, 530–532, 534, 535, 537–539, 600–611, 613 .................................................................................... BMC CHICAGO IL 60808

420, 423, 424, 475–479, 614–620, 622–631, 633–639 .................................................................................... BMC ST LOUIS MO 63299

640, 641, 644–658, 660–662, 664–679, 739 ..................................................................................................... BMC KANSAS CITY KS 64399

730, 731, 734–738, 740, 741, 743–746, 748, 749 ............................................................................................ ASF OKLAHOMA CITY OK 730

706, 710–712, 718, 733, 747, 750–799, 885 .................................................................................................... BMC DALLAS TX 75199

690–693, 800–816, 820, 822–831 ..................................................................................................................... BMC DENVER CO 80088

832–834, 836, 837, 840–847, 893, 898, 979 .................................................................................................... ASF SALT LAKE CTY UT 840

850, 852, 853, 855–857, 859, 860, 863, 864 .................................................................................................... ASF PHOENIX AZ 852

865, 870–875, 877–884 ..................................................................................................................................... ASF ALBUQUERQUE NM 870

889–891, 900–908, 910–928, 930–935 ............................................................................................................. BMC LOS ANGELES CA 90901

894, 895, 897, 936–969 ..................................................................................................................................... BMC SAN FRANCISCO CA 94850

835, 838, 970–978, 980–986, 988–999 ............................................................................................................. BMC SEATTLE WA 98000

1 Mailed from ZIP Code areas 006–009.

2 If the entry post office is in ZIP Code areas 010–269, combine with mail for ZIP Code areas 005–007, 009, 068–079, 085–098, 100–119,

124–127, and 340, and label to BMC NEW JERSEY NJ 00102. 3 If the entry post office is in ZIP Code areas 270–999, combine with mail for ZIP Code areas 299, 313–316, 320–339, 341, 342, 344, 346,

347, and 349, labeled to BMC JACKSONVILLE FL 32099.
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37985

* * * * *

M Mail Preparation and Sortation

M000 General Preparation Standards

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS

* * * * *

1.3 Preparation Instructions

[Insert new 1.3r and 1.3s to read as

follows:]

For purposes of preparing mail:

* * * * *

r. An overflow sack for Parcel Post

DSCF rate mail is a 5-digit sack

prepared with fewer than 7 pieces after

all other sacks for that same 5-digit ZIP

Code area are prepared with 7 or more

pieces per sack as required by M630. If

all of the mail is sacked under M630,

only one overflow sack is permitted for

each 5-digit ZIP Code. If a mailing is

prepared on pallets, remaining pieces of

Parcel Post mail may be prepared in one

or more 5-digit overflow sacks only after

one or more 5-digit pallets are prepared

to meet the minimum pallet

requirement specified in M045. More

than one overflow sack per 5-digit ZIP

Code area is permitted for mail prepared

to 5-digit pallets under M045. Pieces in

overflow sacks qualify for the Parcel

Post DSCF rates.

s. An overflow pallet in a Parcel Post

DSCF rate mailing is a 5-digit pallet

containing pieces that remain after one

or more 5-digit pallets have been

prepared to meet the minimum pallet

requirement specified in M045. Only

one overflow pallet per 5-digit ZIP Code

area is permitted for DSCF rate mail

palletized under M045. Pieces on 5-digit

overflow pallets qualify for the DBMC

rates.

1.4 Mailing

[Amend 1.4 to read as follows:]

Mailings are defined as:

a. General. A mailing is a group of

pieces within the same class of mail

and, except for certain parcel rates, the

same processing category that may be

sorted together and/or may be presented

under a single minimum volume

mailing requirement under the

applicable standards. Generally, types of

mail that follow different flows through

the postal processing system (e.g.,

automation, nonautomation carrier

route, and other nonautomation) and

mail for each separate class and subclass

must be prepared as a separate mailing.

Other specific standards may define

whether separate mailings may be

combined, palletized, reported, or

deposited together.

b. First-Class Mail. The following

types of First-Class Mail may not be part

of the same mailing despite being in the

same processing category:

(1) automation rate and any other type

of mail;

(2) nonautomation Presorted rate and

any other type of mail;

(3) nonautomation Presorted rate mail

prepared under the optional upgradable

preparation and nonautomation

Presorted rate mail prepared under the

required preparation;

(4) single-piece rate and any other

type of mail.

c. First-Class Postcards. Postcards and

letters must be prepared as separate

mailings except that they may be sorted

together if each meets separate

minimum volume mailing requirements.

d. Periodicals. Mail qualifying for the

In-County subclass rates may be part of

a mailing at the Regular rates, or the

Nonprofit rates, or the Classroom rates.

Mail at carrier route rates,

nonautomation presort rates, and

automation rates must each be sorted as

separate mailings. However, each of

these mailings may be reported on the

same postage statement provided the

pieces are for the same publication and

edition. See M041.6.0, M045.5.0,

M045.7.0, and M200.6.0 for

copalletized, combined, or mixed-rate

level mailings.

e. Standard Mail (A). Except as

provided in E620.1.2, the following

types of Standard Mail (A) may not be

part of the same mailing:

(1) automation Enhanced Carrier

Route and any other type of mail;

(2) non-carrier route automation and

any other type of mail;

(3) nonautomation Enhanced Carrier

route and any other type of mail;

(4) Presorted rate mail and any other

type of mail;

(5) Presorted rate mail prepared under

the optional upgradable preparation and

Presorted rate mail prepared under the

required preparation;

(6) except as provided by standard,

Regular mail may not be in the same

mailing as Nonprofit mail, and

Enhanced Carrier Route mail may not be

in the same mailing as Nonprofit

Enhanced Carrier Route mail.

See M041.6.0, M045.5.0, M045.7.0,

and M200.6.0 for copalletized,

combined, or mixed-rate level mailings.

f. Standard Mail (B). Except for singlepiece rate pieces not otherwise subject

to a minimum mailing requirement that

are presented under an approved

manifest mailing system under P710,

the following types of Standard Mail (B)

may not be part of the same mailing

even if in the same processing category:

(1) Parcel Post mail and any other

type of mail;

(2) Bound Printed Matter and any

other type of mail;

(3) Special Standard and any other

type of mail;

(4) Library Mail and any other type of

mail.

* * * * *

M012 Markings and Endorsements

[Renumber current M012.3.0 and

M012.4.0 as M012.4.0 and M012.5.0,

respectively. Reorganize and revise

M012.1.0 and M012.2.0 and insert new

M012.3.0 to read as follows:]

1.0 MARKINGS—BASIC STANDARDS

1.1 Class and Rate

Except for single-piece First-Class

Mail, mailpieces must be marked under

the corresponding standards to show the

class of service and/or rate paid:

a. Single-Piece First-Class Mail may

be identified under E130.2.5.

b. Presorted First-Class Mail and

Standard Mail (A) must be marked

under 2.0.

c. Standard Mail (B) must be marked

under 3.0.

d. Priority Mail must be identified

under E120.

e. Periodicals must be identified

under E211.

f. Express Mail is identified with the

Express Mail mailing label (Label 11 or

Form 5625) without any other required

class or rate marking.

g. All mailable hazardous materials

must be labeled and/or marked as

required in C020.

1.2 Enclosures

Enclosures, attachments, and mixed

rate mailpieces must be marked under

the applicable standards in E070, M070,

and P070.

1.3 Printing and Designs

Required markings may be printed by

a postage meter, special slug, ad plate,

or other means that ensures a legible

marking. A marking may not include or

be part of a decorative design or

advertisement.

2.0 MARKINGS—FIRST-CLASS MAIL

AND STANDARD MAIL (A)

2.1 Placement

a. Basic Marking. The basic required

marking that indicates the class or

subclass—‘‘First-Class.’’ ‘‘Presorted

Standard’’ or ‘‘PRSRT STD’’ (or, until

January 10, 2001, ‘‘Bulk Rate’’ or ‘‘Blk.

Rt.’’); or ‘‘Nonprofit Organization’’ or

‘‘Nonprofit Org.’’ or ‘‘Nonprofit’’ must

be printed or produced as part of, or

directly below or to the left of, the

permit imprint indicia, meter stamp or

impression, or adhesive or precanceled

stamp.
37986 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

b. Other Markings. Other rate-specific

markings (‘‘Presorted’’ or ‘‘PRSRT’’ and

‘‘Single-Piece’’ or ‘‘SNGLP’’ (First-Class

Mail only); ‘‘AUTO’’ and ‘‘AUTOCR’’

(First-Class Mail and Standard Mail

(A)); ‘‘ECRLOT,’’ ‘‘ECRWSH,’’ and

‘‘ECRWSS’’ (Standard Mail (A) only)

may be placed in the location specified

in 2.1a or, if the marking appears alone

or if no other information appears on

the line with the marking except postal

optional endorsement line information

under M013 or postal carrier route

package information under M014, may

be placed in the address area on the line

directly above or two lines above the

address. If preceded by two asterisks,

the ‘‘AUTO,’’ ‘‘AUTOCR,’’ ‘‘SinglePiece,’’ or ‘‘SNGLP’’ markings also may

be placed on the line above or two lines

above the address in a mailer keyline or

a manifest keyline or placed above the

address and below the postage in an

MLOCR ink-jet printed date correction/

meter drop shipment line. Alternatively,

the ‘‘AUTO’’ or ‘‘AUTOCR’’ markings

may be placed to the left of the DPBC

(subject to the barcode location and

clear zone standards in C840).

c. Additional Requirements for Carrier

Route. ‘‘AUTOCR’’ (First-Class Mail

only), ‘‘ECRLOT,’’ ‘‘ECRWSH,’’ and

‘‘ECRWSS’’ (Standard Mail (A) only)

must appear in their entirety wherever

placed, except ‘‘ECR’’ may be placed in

the postage area if ‘‘LOT,’’ ‘‘WSH,’’ or

‘‘WSS,’’ as applicable, is placed in the

line above or two lines above the

address, as specified in 2.1b.

2.2 Exceptions to Markings

a. AUTO Marking. Non-carrier route

automation rate First-Class Mail and

Standard Mail (A) pieces do not require

an ‘‘AUTO’’ marking if they bear a

DPBC in the address block or on an

insert visible through a window in the

address block or lower right corner.

Non-carrier route automation rate FirstClass pieces not marked ‘‘AUTO’’ must

bear both the ‘‘Presorted’’ and ‘‘FirstClass’’ markings. Non-carrier route

automation rate Standard Mail (A)

pieces not marked ‘‘AUTO’’ must bear

the appropriate basic marking for

Standard Mail in 2.1a.

b. Manifest Mailings. The basic

marking must appear in the postage area

on each piece as required in 2.1a. The

two-letter rate category code required in

the keyline on manifest mailing pieces

prepared under P710 meets the

requirement for other rate markings

(e.g., on a First-Class piece mailed at

automation carrier route rates, the ‘‘AC’’

code may replace the ‘‘AUTOCR’’

marking).

3.0 Placement of Markings—Standard

Mail (B)

3.1 Basic Markings

The basic required marking that

indicates the subclass—‘‘Bound Printed

Matter;’’ ‘‘Special Standard Mail’’ or

‘‘SPEC STD,’’ ‘‘Library Rate’’ or ‘‘Library

Mail’’—must be printed on the

mailpiece. Effective January 10, 2000,

these basic required markings must be

printed or produced as part of, or

directly below or to the left of, the

permit imprint indicia or meter stamp

or impression. The markings ‘‘Parcel

Post’’ or ‘‘PP’’ also must be printed or

produced as part of, or directly below or

to the left of, the permit imprint indicia

or meter stamp or impression. These

Parcel Post markings are required for

drop shipment rate mail and, effective

January 10, 2000, will be required for all

Parcel Post mail.

3.2 Other Parcel Post Markings

The required markings ‘‘Drop Ship’’

or ‘‘D/S’’ for Parcel Post drop shipment

rate mail may be placed in the postage

area location specified in 3.1.

Alternatively, it may be placed in the

address area on the line directly above

or two lines above the address if the

marking appears alone (no other

information appears on that line). Until

January 10, 2000, mail qualifying for the

DBMC rate may bear the marking

‘‘DBMC Parcel Post’’ or ‘‘DBMC PP’’ in

either location.

3.3 Other Bound Printed Matter

Markings

The required markings ‘‘Presorted’’

(or ‘‘PRSRT’’) or ‘‘Presorted Standard’’

(or ‘‘PRSRT STD’’) or ‘‘Carrier Route

Presort’’ (or ‘‘CAR-RT SORT’’) may be

placed in the location specified in 3.1.

Alternatively, these markings may be

placed in the address area on the line

directly above or two lines above the

address if the marking appears alone or

if no other information appears on the

line with the marking except postal

optional endorsement line information

under M013 or postal carrier route

package information under M014.

3.4 Other Special Standard Markings

The required ‘‘Presorted’’ or ‘‘PRSRT’’

for Special Standard mail may be placed

in the location specified in 3.1.

Alternatively, it may be placed in the

address area on the line directly above

or two lines above the address if the

marking appears alone (no other

information appears on that line).

* * * * *

M032 Barcoded Labels

1.0 BASIC STANDARDS—TRAY AND

SACK LABELS

* * * * *

1.3 Content Line (Line 2)

[Amend Exhibit 1.3a by deleting the

following headings and all information

under them: Priority Mail Letters—

Presorted; Priority Mail Flats—

Presorted; and Priority Mail Parcels—

Presorted.]

[Amend Exhibit 1.3a, Periodicals (PER),

by changing the heading ‘‘PER Letters—

3⁄5 and Basic’’ to ‘‘PER Letters—5-Digit,

3-Digit, and Basic.’’]

[Amend Exhibit 1.3a, Periodicals (PER),

by changing the heading ‘‘PER Flats—3⁄5

and Basic’’ to ‘‘PER Flats—5-Digit, 3-

Digit, and Basic.’’]

[Amend Exhibit 1.3a, Periodicals (PER),

by changing the heading ‘‘PER Parcels—

3⁄5 and Basic’’ to ‘‘PER Parcels—5-Digit,

3-Digit, and Basic.’’]

[Amend Exhibit 1.3a, Periodicals

(NEWS), by changing the heading

‘‘NEWS Letters—3⁄5 and Basic’’ to

‘‘NEWS Letters—5-Digit, 3-Digit, and

Basic.’’]

[Amend Exhibit 1.3a, Periodicals

(NEWS), by changing the heading

‘‘NEWS Flats—3⁄5 and Basic’’ to ‘‘NEWS

Flats—5-Digit, 3-Digit, and Basic.’’]

[Amend Exhibit 1.3a, Periodicals

(NEWS), by changing the heading

‘‘NEWS Parcels—3⁄5 and Basic’’ to

‘‘NEWS Parcels—5-Digit, 3-Digit, and

Basic.’’]

[Amend Exhibit 1.3a, Standard Mail (B),

by changing the heading ‘‘Bulk Bound

Printed Matter Flats—Carrier Route’’ to

‘‘Bound Printed Matter Flats—Carrier

Route’’]

[Amend Exhibit 1.3a, Standard Mail (B),

by changing the heading ‘‘Bulk Bound

Printed Matter Flats—Basic’’ to

‘‘Presorted Bound Printed Matter Flats—

Basic’’]

[Amend Exhibit 1.3a, Standard Mail (B),

by changing the heading ‘‘Bulk Bound

Printed Matter Irregular Parcels—Carrier

Route’’ to ‘‘Bound Printed Matter

Irregular Parcels—Carrier Route’’]

[Amend Exhibit 1.3a, Standard Mail (B),

by changing the heading ‘‘Bulk Bound

Printed Matter Irregular Parcels—Basic’’

to ‘‘Presorted Bound Printed Matter

Irregular Parcels—Basic’’]

[Amend Exhibit 1.3a, Standard Mail (B),

by changing the heading ‘‘Bulk Bound

Printed Matter Machinable Parcels—

Basic’’ to ‘‘Presorted Bound Printed

Matter Machinable Parcels—Basic’’]

[Amend Exhibit 1.3a, Standard Mail (B),

by inserting a new Parcel Post category

after Parcel Post Machinable Parcels to

read as follows:]
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37987

Class and mailing

Human-readable

CIN Content

line

* * * * *

Parcel Post DSCF and DDU Rates

5-digit sacks .................. 688 STD B

5D

* * * * *

M033 Sacks and Trays

1.0 BASIC STANDARDS

1.2 Equipment

[Revise 1.2c to reflect the new 13-ounce

weight limit for First-Class Mail to read

as follows:]

Mailings must be prepared in the

container appropriate for the processing

category and rate of the mail as follows:

* * * * *

c. First-Class Mail parcels weighing

less than 13 ounces must be prepared in

green USPS sacks.

* * * * *

M041 General Standards

* * * * *

4.0 PALLET BOXES

[Revise 4.1, 4.2, and 4.4 to read as

follows:]

4.1 Use

A mailer may use pallet boxes

constructed of single-, double-, or triplewall corrugated fiberboard placed on

pallets to hold sacks or parcels prepared

under M045. Pallet boxes must protect

the mail and maintain the integrity of

the pallet loads throughout

transportation, handling, and

processing. Single-wall corrugated

fiberboard may be used only for light

loads (such as lightweight parcels) that

do not require transportation by the

USPS beyond the entry office, or for

Parcel Post DSCF rate mail. Mailers

must supply their own pallet boxes. The

base of the boxes must measure

approximately 40 by 48 inches. M045

requires the use of pallet boxes meeting

the size requirements in 4.2 for

machinable Parcel Post claiming OBMC

Presort and BMC Presort discounts.

M045 prohibits use of pallet boxes for

nonmachinable Parcel Post claiming

OBMC Presort and BMC Presort

discounts. Pallet boxes meeting the size

dimensions in 4.2 also may be used at

the mailer’s option for Parcel Post DSCF

and Parcel Post DDU rate mail.

4.2 Height

The combined height of a single

pallet, pallet box, and mail may not

exceed 77 inches. The contents of the

box may not extend above the top rim

of the box. For Parcel Post DSCF and

Parcel Post DDU rate mailings, the

height of the pallet box may not exceed

60 inches (excluding the pallet). For

Parcel Post OBMC Presort and BMC

Presort rate mailings of machinable

pieces, the height of the pallet box must

be 69 inches (excluding the pallet).

* * * * *

4.4 Nonconforming

Except when mailing Parcel Post

claiming a DSCF or DDU rate, a

nonconforming mailer (see 1.4) may use

pallet boxes only if the boxes are

constructed of triple-wall corrugated

fiberboard (C-flute and/or B-flute

material) with a maximum height (pallet

and box) of 77 inches.

5.0 PREPARATION

* * * * *

5.2 Required Preparation

[Revise text of 5.2 to read as follows:]

These standards apply to:

a. Periodicals, Standard Mail (A), and

Parcel Post (other than BMC Presort,

OBMC Presort, DSCF and DDU rate

mail). [Insert current 5.2.]

b. Parcel Post Mailed at BMC Presort,

OBMC Presort, DSCF and DDU Rates.

Pallets must meet the requirements

specifically prescribed for these rates in

M045.

5.3 Minimum Load

[Revise text of 5.3 to read as follows.]

These standards apply to:

a. Periodicals, Standard Mail (A), and

Parcel Post (Other than BMC Presort,

OBMC Presort, DSCF and DDU Rate

Mail). [Insert current 5.3.]

b. Parcel Post Mailed at BMC Presort,

OBMC Presort, DSCF and DDU Rates.

A minimum load for the rate claimed

may be stated in terms of weight,

combined piece minimum and weight,

or minimum height. M045 specifies

separate minimum mail heights for

machinable parcels and for

nonmachinable parcels claimed at

OBMC Presort and BMC Presort rates.

Mail entered at the Parcel Post DSCF

rates and prepared directly on pallets or

in pallet boxes on pallets must be

prepared under either a minimum

height requirement or under one of two

options requiring a minimum number of

pieces and pounds per pallet under

M045. There is no minimum weight

requirement for an SCF pallet

containing 5-digit sacks prepared for the

DSCF rate under M630 (see M045).

There are no minimums for the Parcel

Post DDU rate.

[Renumber current 5.4 through 5.7 as

5.5 through 5.8, respectively. Insert new

5.4 to read as follows:]

5.4 Minimum Height of Mail

The definitions of the minimum

height of mail used to qualify for OBMC

Presort, BMC Presort and DSCF Parcel

Post rates are:

a. Machinable Parcels at OBMC

Presort and BMC Presort Discounts and

Parcels at DSCF Rates. The minimum

height of mail in a pallet box is the

shortest vertical distance measured from

the bottom of a pallet box to the top of

the lowest mailpiece. The height of the

pallet is not included in this

measurement.

b. DSCF Rates and Nonmachinable

Parcels at OBMC Presort and BMC

Presort Discounts. The minimum height

of mail on a pallet is the shortest

vertical distance measured from the top

of the pallet to the top of the lowest

mailpiece. The height of the pallet is not

included in this measurement.

* * * * *

M045 Palletized Mailings

* * * * *

2.0 PACKAGES OF FLATS

* * * * *

2.4 Size—Standard Mail (B)

[In 2.4c to change the phrase ‘‘bulk

Bound Printed Matter’’ to ‘‘presorted

Bound Printed Matter.]

* * * * *

[Add sections 9.0 through 12.0 to

specify preparation requirements for the

new BMC Presort, OBMC Presort, DSCF,

and DDU rates as follows:]

9.0 PARCEL POST—BULK MAIL

CENTER (BMC) PRESORT DISCOUNT

9.1 Machinable Parcels

a. To qualify for the BMC Presort

discount, machinable pieces must be

sorted to BMCs under L601 in 69-inch

pallet boxes. Each pallet box must

contain at least 52 inches of mail (not

including pallet) for a BMC (see M041).

Overflow pallet boxes are not permitted.

Preparation in sacks, directly on pallets,

or in other containers is not permitted.

b. Pallet Box preparation and Line 1

labeling: destination BMC (required); for

Line 1 use L601.

c. Pallet Box Line 2 labeling: ‘‘STD B

MACH BMC.’’

9.2 Nonmachinable Parcels

a. To qualify for the BMC Presort

discount, nonmachinable pieces must
37988 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

be sorted to BMCs and ASFs under L605

directly on pallets. Each pallet for a

BMC or ASF destination must have a

minimum height of 42 inches of mail

(not including the height of the pallet)

(see M041). Overflow pallets are not

allowed. Preparation in sacks, pallet

boxes, or in other containers is not

permitted.

b. Pallet preparation and Line 1

labeling: destination BMC or destination

ASF (required); for line 1, use L605.

c. Pallet Line 2 labeling: ‘‘STD B NON

MACH BMC’’ or ‘‘STD B NON MACH

ASF,’’ as appropriate.

10.0 PARCEL POST—ORIGIN BULK

MAIL CENTER PRESORT (OBMC

PRESORT) DISCOUNT

10.1 Machinable Parcels

a. To qualify for the OBMC Presort

discount, machinable pieces must be

sorted to BMCs under L601 in 69-inch

pallet boxes. Each pallet box must

contain at least 52 inches of mail (not

including pallet) for a BMC (see M041).

Overflow pallet boxes are not permitted.

Preparation in sacks, directly on pallets,

or in other containers is not permitted.

b. Pallet Box preparation and Line 1

labeling: destination BMC (required); for

Line 1, use L601.

c. Pallet Box Line 2 labeling: ‘‘STD B

MACH BMC.’’

10.2 Nonmachinable Parcels

a. To qualify for the OBMC Presort

discount, nonmachinable pieces must

be sorted to BMCs and ASFs under L605

directly on pallets. Each pallet for a

BMC or ASF destination must have a

minimum height of 42 inches of mail

(not including the height of the pallet)

(see M041). Overflow pallets are not

allowed. Preparation in sacks, pallet

boxes, or in other containers is not

permitted.

b. Pallet preparation and Line 1

labeling: destination BMC or destination

ASF (required); for line 1, use L605.

c. Pallet Line 2 labeling: ‘‘STD B NON

MACH BMC’’ or ‘‘STD B NON MACH

ASF,’’ as appropriate.

11.0 PARCEL POST DSCF RATES—

PARCELS ON PALLETS

11.1 Basic Preparation, Parcels on

Pallets

Unless prepared under 11.2, or in

sacks under M630, mail must be

prepared for the DSCF rate as follows:

a. General. Parcels for each SCF area

must be sorted to 5-digit ZIP Codes on

pallets. For purposes of this section the

term pallets includes preparation of

parcels directly on pallets and

preparation of parcels in pallet boxes on

pallets. Except when prepared under

11.2, each 5-digit pallet must meet a

minimum volume requirement under

one of the criteria in 11.1b. Machinable

and nonmachinable pieces may be

combined on the same pallet or in the

same overflow sack. In a single mailing

mailers may prepare some pallets under

the minimum volume requirement in

11.1b(1) and some pallets under the

minimum volume requirement in

11.1b(2). A mailing entered at a

destination SCF facility containing

pallets prepared under 11.1 also may

include mail that is sacked for the DSCF

rate under M630. Double-stacking is

permitted if the requirements of M041

are met.

b. Minimum Volume. The minimum

volume per 5-digit pallet can be met in

one of the following ways.

(1) pieces may be placed on 5-digit

pallets each containing at least 50 pieces

and 250 pounds, or

(2) pieces can be placed on 5-digit

pallets each having a minimum height

of 36 inches of mail (not including the

height of the pallet) (see M041).

c. Overflow. If after filling a pallet or

pallets to a 5-digit destination, pieces

remain that do not meet the minimum

pallet requirements they may be

prepared in one of the following ways.

One or both methods may be used in a

single mailing.

(1) Placed in 5-digit overflow sacks

(no minimum number of pieces per

sack) that are labeled in accordance

with the 5-digit sacking requirements

for the DSCF rate in M630. Overflow

pieces sacked in this manner are eligible

for the DSCF rates.

(2) Placed on a 5-digit pallet labeled

under 11.1d that does not meet the

minimums for the DSCF rate. Overflow

pieces palletized in this manner are not

eligible for the DSCF rates but are

eligible for the DBMC rates.

d. 5-digit pallet labeling:

(1) for Line 1, use city, state, and 5-

digit ZIP Code destination of contents.

(2) for Line 2 use: ‘‘STD B 5D.’’

e. Separation. If sacks prepared under

M630 are included in the same mailing

as pallets prepared under this section, at

the time of acceptance the mailer must

separate sacks that are overflow from

palletized mail from those sacks that

were prepared under the provisions of

M630.

11.2 Alternate Preparation, Parcels on

Pallets

DSCF rate mailings not prepared

under 11.1 may be prepared as follows:

a. General. All DSCF rate mail in the

mailing must be sorted to 5-digits under

11.2 (i.e., mail prepared under 11.1 and

mail sacked under M630 must not be

included in a mailing prepared under

11.2). For purposes of this section the

term pallets includes preparation of

parcels directly on pallets and

preparation of parcels in pallet boxes on

pallets. Machinable and nonmachinable

pieces may be combined on the same

pallet or in the same overflow sack. The

documentation in 11.2e must be

presented at the time of verification.

Double-stacking is permitted if the

requirements of M041 are met.

b. Minimum Volume. To qualify for

the DSCF rate, no pallet may contain

fewer than 35 pieces and 200 pounds,

and for the entire mailing the average

number of DSCF rate pieces per 5-digit

pallet must be at least 50.

c. Overflow. If after filling a pallet or

pallets to a 5-digit destination, pieces

remain that do not meet the minimum

pallet requirement they may be

prepared in one of the following ways.

One or both methods may be used in a

single mailing.

(1) Placed in 5-digit overflow sacks

(no minimum number of pieces per

sack) that are labeled in accordance

with the DSCF sacking requirements in

M630. Overflow pieces sacked in this

manner are eligible for the DSCF rates.

(2) Placed on a 5-digit pallet labeled

under 11.2d that does not meet the

minimums for the DSCF rate. Overflow

pieces palletized in this manner are not

eligible for the DSCF rates but are

eligible for the DBMC rates.

d. 5-digit pallet labeling:

(1) For Line 1, use city, state, and 5-

digit ZIP Code destination of contents.

(2) For Line 2 use: ‘‘STD B 5D.’’

(3) In mailer area below line 3: the

pallet ID number.

e. Documentation. A list of each 5-

digit pallet in the mailing that qualifies

for the DSCF rate must be submitted.

The pallets in the mailing that qualify

for the DSCF rate must be numbered

sequentially, and this pallet

identification number must be printed

below Line 3 on the pallet label. The

documentation must list each pallet in

sequential order by pallet identification

number. The listing must show for each

pallet the pallet identification number,

the 5-digit ZIP Code of the pallet, the

total weight of pieces on the pallet, the

total number of pieces on the pallet, and

the cumulative total of pieces (i.e., the

number equal to the number of pieces

for that pallet plus the sum of the pieces

on all pallets listed above it). This

documentation must not include: pieces

prepared in overflow sacks at the DSCF

rate, and pieces prepared on overflow

pallets at the DBMC rates, or pieces

claimed at any other rate in the mailing.
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37989

11.3 5-Digit ZIP Codes for Which

Pallets May Not Be Prepared

Refer to the Drop Shipment Product

available from the National Customer

Support Center (NCSC) (see G043) and

to Exhibits E652.6.0 and E652.7.0 to

determine if the facility serving the 5-

digit destination can handle pallets.

There is a charge for the Drop Shipment

Product. If a facility cannot handle

pallets, the DSCF rate is not applicable

unless the mail can be prepared under

the sacking requirement in M630.

11.4 5-Digit ZIP Codes Requiring BMC

Entry

Refer to Exhibit E652.5.0 for 5-digit

destinations where palletized mail must

be entered at the BMC that serves the

SCF to obtain the DSCF rate.

12.0 PARCEL POST DSCF RATES—

SACKS ON PALLETS

Mailers who prepared DSCF rate mail

in 5-digit sacks under M630 may place

5-digit sacks for the same SCF area on

an SCF pallet (including a pallet box on

a pallet). Mailers who prepare overflow

from pallets under 11.1 or 11.2 may

place 5-digit sacks for the same SCF area

on an SCF pallet (including a pallet box

on a pallet). See 11.1e for requirements

concerning separation of sacks prepared

under M630 from sacks prepared under

11.1. There are no pallet minimums for

such pallets. Mailers may prepare such

SCF pallets without having to prepare

all possible 5-digit pallets prior to

preparing the SCF pallet. The pallets

must be labeled in the following

manner:

Line 1: Use L002, Column C

Line 2: STD B PP 5D SACKS

13.0 PARCEL POST DDU RATES

Parcels may be bedloaded, sacked, or

palletized. For purposes of this section

the term pallets includes preparation of

parcels directly on pallets and

preparation of parcels in pallet boxes on

pallets. There are no preparation or

presort requirements for DDU rate

mailings other than separation by 5-

digit. If pieces are sacked or palletized,

they must be prepared to 5-digits and

labeled as follows: Line 1 labeling—use

city, state, and 5-digit ZIP Code

destination; Line 2 use ‘‘STD B 5D.’’

Machinable and nonmachinable pieces

may be combined. Refer to the Drop

Shipment Product maintained by the

National Customer Support Center

(NCSC) (see G043) and the information

in E652 including Exhibits E652.6.0 and

E652.7.0 to determine the location of the

5-digit delivery facility, whether that

facility can handle pallets (including

pallet boxes on pallets). If a DDU facility

cannot handle pallets, and a mailer

transports mail to the DDU facility on

pallets, the driver must unload the

pallets into a container specified by the

delivery unit.

M050 Delivery Sequence

* * * * *

4.0 DOCUMENTATION

[Revise 4.1 and 4.2 to read as follows:]

4.1 General

The mailer must provide

documentation as described below to

substantiate compliance with the

standards for carrier sequencing. Unless

the documentation is submitted with

the corresponding mailing, the mailer

must be able to provide the USPS with

documentation of accurate sequencing

or delivery statistics for each carrier

route to which walk-sequence rate

pieces are mailed. The mailer must

annotate the postage statement to show

the earliest (oldest) date of the method

(in 41.a through 4.1e) used to obtain

sequencing of delivery stop information

for the mailing. For Periodicals the

postage statement must be annotated in

the ‘‘Sequencing Date’’ block on each of

the lines where high density and

saturation per piece rate postage is

reported. For Standard Mail (A) the

postage statement must be annotated in

the ‘‘Sequencing Date’’ block on the

front of the postage statement where

total postage for Enhanced Carrier Route

rates is reported. One or more of these

must be submitted:

a. CDS invoice.

b. DSF invoice or DSF documentation.

c. Copies of the delivery unit

summaries that served as the mailer’s

bills for address sequencing service

charges.

d. Evidence of receipt of information

from postmasters under A930 for

simplified address mailings.

e. Date LOT product used.

4.2 High Density

The following documentation must be

submitted for high density rate mail:

a. Standard Mail (A) and Periodicals

Other than In-County Mail Qualifying

Under E230.6.4c. For each carrier route

to which high density rate mail is

addressed, the mailer must document

the total number of addressed pieces to

the route. If there are fewer than 125

addressed pieces for a given route, the

documentation also must show the

number of possible deliveries on the

route.

b. Periodicals In-County Mail

Qualifying Under E230.6.4c. For each

carrier route for which Periodicals InCounty high density rates are claimed

under the minimum 25% of the total

active possible deliveries per carrier

route under E230.6.4c, the

documentation must show for each

carrier route for which the rates are

claimed the total number of active

possible deliveries and the number and

percentage of deliveries to which

mailpieces are addressed. The

documentation must be listed by 5-digit

ZIP Code and, within each, by carrier

route. It must be submitted with each

applicable mailing.

* * * * *

M070 Mixed Classes

* * * * *

M072 Express Mail and Priority Mail

Drop Shipment

1.0 BASIC STANDARDS

1.1 Standards

[Revise 1.1 by adding references to

M072 and D071 to read as follows:]

The Express Mail or Priority Mail

portion of the shipment must meet the

standards in M500 or M100

respectively, and the applicable

standards in M072 and D071.

* * * * *

2.0 ADDITIONAL STANDARDS FOR

ENCLOSED MAIL

2.5 Standard Mail (B)

[Amend 2.5 to delete the reference to

‘‘Bulk Parcel Post,’’ to change the phrase

‘‘bulk Bound Printed Matter’’ to

‘‘presorted Bound Printed Matter,’’ to

add and exception to the zone

separation requirement, and to add

information on new Parcel Post DSCF

and DDU rates to read as follows:]

Presorted Bound Printed Matter paid

with meter or permit imprint, or singlepiece rate Parcel Post or Bound Printed

Matter paid with permit imprint, must

be sorted by zone in separate Priority

Mail or Express Mail pouches unless

presented under a special postage

payment system under P710, P720, or

P730. If the enclosed mail is not

presented under a special postage

payment system under P710, P720, or

P730, the Priority Mail or Express Mail

pouches must be separated into groups

by postal zone when presented to the

USPS. For Parcel Post mail, the DBMC,

DSCF, or DDU entry rate may be

claimed subject to E652 and the

destination of the Express Mail or

Priority Mail sack.

* * * * *

[Revise the title of M073 to read as

follows:]
37990 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

M073 Combined Mailings of Standard

Mail (A) and Standard Mail (B) Parcels

[Revise the title of 1.0 to read as

follows:]

1.0 COMBINED MACHINABLE

PARCELS—RATES OTHER THAN

PARCEL POST OBMC PRESORT, BMC

PRESORT, DSCF, AND DDU

[Renumber current 1.1 as 1.2, insert new

1.1, and revise section numbers in

renumbered 1.2 to read as follows:]

1.1 Qualification

Machinable Standard Mail (A) and

machinable Standard Mail (B) parcels

may be combined under the sortation

and other requirements in 1.0 except

when claiming the following Parcel Post

rates or discounts: OBMC Presort, BMC

Presort, DSCF, and DDU. When

claiming the OBMC Presort, BMC

Presort, or DSCF rates, machinable

Standard Mail (A) and machinable

Standard Mail (B) parcels may be

combined under the sortation and other

requirements in 2.0. Standard Mail (A)

parcels must not be combined with

Standard Mail (B) parcels prepared for

DDU rates.

1.2 Description

Subject to 1.1 and authorization under

1.5, a mailer who is authorized plant

load or plant-verified drop shipment

privileges may prepare a combined

mailing of Standard Mail (A) and

Standard Mail (B) machinable parcels

that have been merged and sorted

together in sacks (under 1.5) or on

pallets (under M040) to achieve the

finest presort level. The combined

mailing must meet the standards in 1.0

and those that apply to the rates

claimed. Each parcel in a combined

mailing is subject to the applicable

Standard Mail rate, based on the

corresponding standards. Required

volume for bulk or presort rates is based

solely on the quantity of pieces eligible

for each rate at the required presort

level. Pieces claimed at other rates in

the same sack or on the same pallet do

not count.

[Renumber existing 1.2 and 1.3 as 1.3

and 1.4, respectively.]

[Renumber existing 2.0 as 1.5.

Renumber existing 2.1 through 2.3 as

1.5a through 1.5c, respectively.]

[Renumber existing 3.0 as 1.6.

Renumber existing 3.1 as 1.6a and

existing 3.1a through 3.1d as 1.6a(1)

through a(4), respectively. Renumber

existing 3.2 as 1.6b and existing 3.2a

through 3.2e as 1.6b(1) through 1.6b(5),

respectively.]

[Add 2.0 to read as follows:]

2.0 COMBINED PARCELS—PARCEL

POST OBMC PRESORT, BMC

PRESORT, AND DSCF RATES

2.1 Qualification

a. When claiming Parcel Post OBMC

Presort and BMC Presort discounts and

DSCF rates, machinable Standard Mail

(A) parcels may be combined with

machinable Standard Mail (B) parcels

under 2.0.

b. When claiming the Parcel Post

DSCF rate, machinable and

nonmachinable Standard Mail (A) may

be combined with machinable and

nonmachinable Standard Mail (B)

parcels under 2.0.

c. Standard Mail (A) parcels may not

be combined with Standard Mail (B)

parcels prepared for DDU rates.

2.2 Authorization

Mailers must be authorized under 1.5

to prepare mailings that combine

Standard Mail (A) and Standard Mail

(B) parcels.

2.3 Postage Payment

Postage for all pieces must be paid

with permit imprint at the post office

serving the mailer’s plant under an

approved manifest mailing system

under P710. The applicable agreement

must include procedures for combined

mailings approved by the RCSC.

2.4 Preparation and Rates

a. Minimum Mailing Volume.

Separate minimum mailing volume

requirements must be met for Standard

Mail (A) parcels and for Standard Mail

(B) parcels.

b. Parcel Post Qualifying for DSCF

Rates. The combined mailings must be

prepared under the applicable 5-digit

sack requirements in M630, or the

applicable 5-digit pallet requirements in

M040 for the Parcel Post DSCF rates. All

other requirements for the Parcel Post

DSCF rates and the Presorted Standard

Mail (A) rates, as applicable, must be

met. The following additional

requirements apply:

(1) If sacked under M630, the

minimum requirement of 7 pieces per

sack must be met with only Standard

Mail (B) parcels. After the minimum

sack volume has been met, Standard

Mail (A) parcels may be included in the

sack or in overflow sacks.

(2) If palletized under the option to

prepare 5-digit pallets when there are at

least 50 pieces and 250 pounds per

pallet, this pallet minimum must be met

with only Standard Mail (B) parcels.

After the minimum pallet volume has

been met, Standard Mail (A) parcels

may be included on the pallet or in

overflow sacks.

(3) If palletized under the alternate

pallet preparation where no pallet may

contain fewer than 35 pieces and 200

pounds provided the average number of

pieces on pallets qualifying for the

DSCF rate is at least 50, Standard Mail

(A) parcels may not be combined with

Standard Mail (B) parcels.

(4) If palletized under the option to

prepare 5-digit pallets under the 36-inch

high (mail only) pallet minimum, any

combination of Standard Mail (A) and

Standard Mail (B) parcels may be used

to meet the minimum pallet height

requirement.

(5) Line 2 of 5-digit pallet and sack

labels must read: ‘‘STD A/B 5D.’’

(6) Standard Mail (A) parcels are

eligible for the Presorted 3/5 rate.

c. Parcel Post Qualifying for OBMC

Presort or BMC Presort rates. The

combined mailings must be prepared

under the M040 BMC pallet

requirements for machinable parcels at

Parcel Post OBMC Presort or BMC

Presort rates. All other requirements for

the Parcel Post OBMC Presort or BMC

Presort rates and the Presorted Standard

Mail (A) rates must be met. The

following additional requirements

apply:

(1) The minimum height requirement

for each pallet or pallet box on a pallet

may be met using any combination of

Standard Mail (A) and Standard Mail

(B) parcels.

(2) Line 2 of BMC pallet box labels

must read: ‘‘STD A/B MACH BMC.’’

(3) Standard Mail (A) parcels are

eligible for the Presorted 3⁄5 rate only if

it can be shown by documentation that

there was insufficient volume of

Standard Mail (A) parcels in the mailing

to prepare separate 5-digit pallets

required for Standard Mail (A)

machinable parcels under M045.

Otherwise, Presorted basic rates apply

to the Standard Mail (A) parcels.

2.5 Documentation

Presort documentation is required as

applicable for each rate claimed if the

manifest does not list pieces in presort

order. Separate postage statements must

be prepared for the Standard Mail (A)

and Standard Mail (B) pieces. Within

each group, combined forms may be

prepared where the standards and the

forms permit. All postage statements

must be provided at the time of mailing.

* * * * *

M120 Priority Mail

* * * * *

[Delete 2.0.]

M130 Presorted First-Class Mail

* * * * *
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37991

[Revise the title of 2.0 to read as

follows:]

2.0 REQUIRED PREPARATION—

LETTER-AND CARD-SIZE PIECES

* * * * *

[Revise the title of 3.0 to read as

follows:]

3.0 OPTIONAL UPGRADABLE

PREPARATION—LETTER-AND CARDSIZE PIECES

* * * * *

5.0 PARCELS

5.1 Standards

[Revise 5.1 to reflect the new 13-ounce

weight limit for First-Class Mail to read

as follows:]

First-Class parcels weighing 13

ounces or less, except Priority Mail,

must be prepared under the standards

below. All Priority Mail, including any

First-Class parcel weighing more than

13 ounces must be must be prepared

under the applicable standards in M120.

* * * * *

M200 Periodicals (Nonautomation)

1.0 BASIC STANDARDS

* * * * *

[Delete 1.6.]

* * * * *

3.0 SACK PREPARATION (FLAT-SIZE

PIECES AND IRREGULAR PARCELS)

3.1 Sack Preparation

[Revise 3.1d and 3.1e to read as

follows:]

Sack size, preparation sequence, and

Line 1 labeling:

* * * * *

d. 3-digit: required at 24 pieces,

optional with one six-piece package

minimum except under 1.5; for Line 1,

use L002, Column A.

e. SCF: required at 24 pieces (no

minimum for required origin/optional

entry SCF), optional with one six-piece

package minimum except under 1.5; for

Line 1, use L002, Column C.

* * * * *

M600 Standard Mail (Nonautomation)

[Amend the title of M610. Delete 610.1.0

and renumber 610.2.0 through 610.7.0

as 610.1.0 through 610.6.0, respectively.

Make other revisions as shown below

for clarity and to change

‘‘nonautomation’’ rate to ‘‘Presorted

Standard’’ rate and change ‘‘Bulk Rate’’

to ‘‘Presorted Standard.’’]

M610 Presorted Standard Mail (A)

1.0 BASIC STANDARDS

1.1 All Mailings

All mailings at Presorted Standard

rates (3/5 and basic) are subject to

specific preparation standards in 2.0

through 6.0 and to these general

standards (automation rate mail must be

prepared under M810 or M820, as

applicable):

a. Each mailing must meet the

applicable standards in E620 and in

M010, M020, and M030.

* * * * *

e. Subject to M012, all pieces eligible

for and claimed at Nonprofit Presorted

Standard rates must be marked

‘‘Nonprofit Organization’’ (or

‘‘Nonprofit Org.’’ or ‘‘Nonprofit’’).

Regular Presorted Standard pieces must

be marked ‘‘Presorted Standard’’ (or

‘‘PRSRT STD’’) or, until January 10,

2001, ‘‘Bulk Rate’’ (or ‘‘Blk. Rt.’’). Pieces

mailed at Nonprofit or Regular Presorted

Standard rates must not bear

‘‘ECRWSS,’’ ‘‘ECRWSH,’’ ‘‘ECRLOT,’’

‘‘AUTO,’’ ‘‘AUTOCR,’’ ‘‘Single-Piece’’ or

‘‘SNGLP’’ markings.

* * * * *

1.3 Exception—Standard Mail (A)

When the size of the pieces in a

Standard Mail (A) mailing job allows

them to qualify for preparation as either

letters or automation flats and when

part of the job is prepared as palletized

automation flats, the remainder of the

job may be prepared as palletized flats

at Enhanced Carrier Route nonletter

rates and Presorted nonletter rates if the

number of Presorted rate pieces does not

exceed 10% of the total number of

pieces in the entire mailing job.

Presorted rate pieces in the mailing job

that exceed the 10% limit and therefore

may not be palletized as flats must be

prepared in trays as letter mail and must

be paid for at the letter rates. A separate

200-piece minimum volume

requirement must be met for the trayed

letter mailing to qualify for Standard

Mail (A) rates.

1.4 Processing Instructions

[Change the phrase ‘‘nonautomation

rate’’ to ‘‘Presorted rate’’ to read as

follows:]

If a mailer prefers that the USPS not

upgrade (automate) letter-size or cardsize pieces presented at a Presorted rate,

the mailer must identify each tray of

such mail with a facing slip or other

device marked ‘‘DO NOT AUTOMATE’’

and (for letter-size mail) a tray label on

which Line 2 includes ‘‘Non-OCR.’’

[Revise the title of 2.0 to read as

follows:]

2.0 LETTER-SIZE PIECES—REQUIRED

PREPARATION

* * * * *

[Revise the title of 3.0 to read as

follows:]

3.0 LETTER-SIZE PIECES—

OPTIONAL UPGRADABLE

PREPARATION

* * * * *

6.0 BEDLOADED BUNDLES OF FLATSIZE PIECES

6.1 Authorization

[In the first sentence of 6.1, change

‘‘nonautomation rate’’ to ‘‘Presorted

rate.’’]

The RCSC manager serving the post

office where the mailing is to be made

may authorize preparation of Presorted

rate Standard Mail (A) in bundles that

are outside sacks if this preparation

benefits the USPS. * * *

* * * * *

M620 Enhanced Carrier Route

Standard Mail

1.0 BASIC STANDARDS

1.1 All Mailings

[Revise 1.1a and 1.1e to read as follows:]

All nonautomation rate Enhanced

Carrier Route mailings are subject to

these general standards (automation rate

Enhanced Carrier Route mailings must

be prepared under M810):

a. Each mailing must meet the

applicable standards in E620 and in

M010, M020, and M030.

* * * * *

e. Subject to M012, all pieces eligible

for and claimed at Nonprofit rates must

be marked ‘‘Nonprofit Organization’’ (or

‘‘Nonprofit Org.’’ or ‘‘Nonprofit’’); all

other pieces must be marked ‘‘Presorted

Standard’’ (or ‘‘PRSRT STD’’), or, until

January 10, 2001, ‘‘Bulk Rate’’ (or ‘‘Blk.

Rt.’’). In addition, basic, high-density,

and saturation rate pieces must each be

marked ‘‘ECRLOT,’’ ‘‘ECRWSH,’’ or

‘‘ECRWSS,’’ respectively. Pieces not

claimed at the corresponding

nonautomation Enhanced Carrier Route

rate must not be marked ‘‘ECRLOT,’’

‘‘ECRWSH,’’ or ‘‘ECRWSS.’’

* * * * *

1.4 Exception—Standard Mail (A)

[In 1.4, change the phrase ‘‘nonletter

nonautomation rates’’ to ‘‘Presorted

rates,’’ and make further clarifications to

read as follows:]

When the size of the pieces in a

Standard Mail (A) mailing job allows

them to qualify for preparation as either

letters or automation flats and when

part of the job is prepared as palletized
37992 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

automation flats, the remainder may be

prepared as palletized flats at Enhanced

Carrier Route nonletter rates and

Presorted nonletter rates if the number

of Presorted rate pieces does not exceed

10% of the total number of pieces in the

entire mailing job. Presorted rate pieces

in the mailing job that exceed the 10%

limit and therefore may not be

palletized as flats must be prepared in

trays as letter mail and must be paid for

at the applicable letter rates. A separate

200-piece minimum volume

requirement must be met for the trayed

letter mailing to qualify for Standard

Mail (A) rates.

* * * * *

5.0 RESIDUAL PIECES

Pieces not sorted under 2.0 and either

3.0 or 4.0 must be prepared as a separate

mailing at Standard Mail (A) automation

or Presorted rates, or at single-piece

First-Class or Priority Mail rates, as

appropriate.

* * * * *

M630 Standard Mail (B)

[Amend 1.0 to add preparation

requirements in 1.3–1.6 for new

destination entry Parcel Post rates,

introduce new drop ship markings,

eliminate the ‘‘Catalog’’ marking, and

make other marking changes to read as

follows:]

1.0 PARCEL POST

1.1 Marking

[Amend 1.1 to provide for identifying

Parcel Post pieces as follows:]

Each piece mailed at the DBMC,

DSCF, or DDU Parcel Post rates must be

marked ‘‘Parcel Post’’ or ‘‘PP’’ and

‘‘Drop Ship’’ or ‘‘D/S’’ under M012. An

exception is that until January 10, 2000,

DBMC rate mail may be marked ‘‘DBMC

Parcel Post’’ or ‘‘DBMC PP.’’ All other

Parcel Post rate pieces may bear the

‘‘Parcel Post’’ or ‘‘PP’’ markings, and

effective January 10, 2000, must bear the

‘‘Parcel Post’’ or ‘‘PP’’ marking under

M012. Pieces not marked with the

appropriate drop shipment marking as

required are treated as single-piece rate

Parcel Post and are subject to additional

postage as necessary.

1.2 Separation

[Amend 1.2 to add requirements for the

DSCF and DDU rate categories as

follows:]

Parcel Post pieces must be separated

by zones when presented for acceptance

unless either the correct postage is

affixed to each piece or the mailing is

prepared under 8.0, or presented under

a special postage payment system under

P710, P720, or P730. If sacks prepared

under 1.5 are included in the same

mailing as pallets prepared under M045,

at the time of acceptance the mailer

must separate sacks that are overflow

from palletized mail from those sacks

that were prepared under the provisions

of 1.5.

1.3 Documentation

[Amend 1.3 to read as follows:]

A complete, signed postage statement,

using the correct USPS form or an

approved facsimile, must accompany

each bulk mailing (a mailing that

includes pieces qualifying for rates that

require a 50-piece minimum volume

requirement). When presented for

acceptance, documentation of postage

by entry office and presort level (e.g.,.

by BMC for DBMC, OBMC Presort and

BMC Presort mail and by 5-digit ZIP

Code for DSCF and DDU rates) is

required under P710, P720, or P730.

Except for DSCF rate mail palletized

under the alternate preparation option

that requires separate documentation,

documentation is not required when the

correct rate is affixed to each piece, or

when each piece is of identical weight

and the pieces are separated by zone

and within each zone are grouped by

pieces subject to the same combination

of rates. DSCF rate mail palletized under

the alternate preparation option in

M045 must submit the detailed

documentation required in M045.

[Add 1.4 for DSCF mailings as follows:]

1.4 DSCF Rate

To qualify for the DSCF rate, pieces

for the same SCF area (L002, Column C

or L005) must be sorted to 5-digit ZIP

Code destinations either in sacks under

1.5 or directly on pallets or in pallet

boxes on pallets under M041 and M045.

Pieces must be part of a mailing of at

least 50 Parcel Post pieces. They must

be entered at the designated SCF facility

under L005 that serves the 5-digit ZIP

Code destinations of the pieces except

when palletized and entry is required at

a BMC (see Exhibit E652.5.0). The DSCF

rate is not available for palletized mail

for facilities that are unable to handle

palletized mailings. Refer to the Drop

Shipment Product available from the

National Customer Support Center

(NCSC) (see G043) and Exhibit E652.6.0

and Exhibit E652.7.0 to determine if the

facility serving the 5-digit destination

can handle pallets. There is a charge for

the Drop Shipment Product.

[Add 1.5 to describe sacking

requirements for DSCF mailings as

follows:]

1.5 DSCF Sack Preparation

Sacking requirements for DSCF rates

are as follows:

a. Only 5-digit sacks are permitted.

b. Each 5-digit sack must contain a

minimum of 7 pieces (smaller volume

not permitted). Machinable and

nonmachinable pieces may be combined

in the same sack to meet this

requirement. One overflow sack per 5-

digit ZIP Code is permitted (no piece

minimum).

c. Sack Line 1 labeling: use city, state,

and 5-digit ZIP Code destination of

pieces, preceded for military mail by the

prefixes under M031.

d. Sack Line 2: ‘‘STD B 5D.’’

e. See M045 for option to place 5-digit

DSCF sacks on an SCF pallet.

[Add 1.6 to describe preparation for

DDU rate mailings as follows:]

1.6 DDU Rate

The requirements for the DDU rate are

as follows:

a. For the DDU rate, pieces must be

part of a mailing of at least 50 Parcel

Post pieces.

b. The pieces must be entered by the

mailer at the postal facility where the

carrier delivers the parcels (delivery

unit) as defined in E652.

c. There are no minimum sacking or

pallet preparation standards. DDU rate

mailings may be bedloaded, sacked,

placed directly on pallets or in pallet

boxes on pallets. Machinable and

nonmachinable pieces may be combined

in the same sack or on the same pallet

(including pallet boxes on pallets).

d. If the delivery unit serves more

than one 5-digit ZIP Code, the pieces

must be separated by 5-digit ZIP Code

when unloaded. Refer to the Drop

Shipment Product available from the

National Customer Support Center (see

G043) and Exhibits E652.6.0 and

E652.7.0 to determine the location of the

delivery unit, whether it serves more

than one 5-digit ZIP Code, and whether

it can handle pallets. There is a charge

for the Drop Shipment Product.

e. If mail is sacked it must be labeled

as follows.

Line 1: City, state, and 5-digit ZIP

Code destination, preceded for military

mail by the prefixes under M031.

Line 2: ‘‘STD B 5D.’’

2.0 BOUND PRINTED MATTER

* * * * *

2.3 Marking

[Revise 2.3 to provide for using new

Bound Printed Matter markings as

follows:]

Each piece claimed at single-piece

Bound Printed Matter rates must be

marked ‘‘Bound Printed Matter’’ under

M012. Each piece claimed at presorted

Bound Printed Matter rates must be

marked ‘‘Bound Printed Matter’’ and
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37993

either ‘‘Presorted’’ (or ‘‘PRSRT’’) or

‘‘Presorted Standard’’ (or ‘‘PRSRT STD’’)

under M012. Pieces not marked as

required are treated as single-piece rate

Parcel Post, subject to additional

postage as necessary.

[Delete 2.4. Renumber existing 2.5

through 2.7 as 2.4 through 2.6,

respectively.]

3.0 CARRIER ROUTE BOUND

PRINTED MATTER

* * * * *

3.2 Marking

[Revise 3.2 to eliminate the markings

‘‘Blk. Rt.’’ and ‘‘CATALOG’’ as follows:]

Each piece claimed at carrier route

Bound Printed Matter rates must be

marked ‘‘Bound Printed Matter’’ and

‘‘Carrier Route Presort’’ (or ‘‘Bound

Printed Matter’’ and ‘‘CAR–RT SORT’’)

under M012. The mailer also may opt to

include the marking ‘‘Presorted’’ (or

‘‘PRSRT’’) or ‘‘Presorted Standard’’ (or

‘‘PRSRT STD’’) with the above required

markings under M012. Residual pieces

in a carrier route Bound Printed Matter

mailing may have the ‘‘Carrier Route

Presort’’ or ‘‘CAR–RT SORT’’ marking if

the number of residual pieces to any

single 5-digit ZIP Code area does not

exceed 5% of the total qualifying carrier

route rate pieces addressed to that 5-

digit area. The residual pieces must be

separated from the qualifying pieces

when presented to the USPS. Pieces not

marked as required are treated as singlepiece rate Parcel Post and subject to

additional postage as necessary.

* * * * *

3.7 Residual Pieces

[Amend the third sentence of 3.7 by

replacing the phrase ‘‘bulk Bound

Printed Matter’’ with ‘‘presorted Bound

Printed Matter.’’]

4.0 SPECIAL STANDARD MAIL

* * * * *

4.2 Marking

[Revise 4.2 to add the marking ‘‘PRSRT’’

as follows:]

Each piece claimed at Special

Standard Mail rates must be marked

‘‘Special Standard Mail’’ or ‘‘SPEC

STD’’ under M012. Each piece claimed

at presorted Special Standard Mail rates

also must be marked ‘‘Presorted’’ or

‘‘PRSRT’’ under M012. Pieces not

marked as required are treated as singlepiece Parcel Post, subject to additional

postage as necessary.

* * * * *

5.0 LIBRARY MAIL

* * * * *

5.2 Marking

[Revise 5.2 to add a reference to M012

to read as follows:]

Each piece of Library Mail must be

marked ‘‘Library Rate’’ or ‘‘Library

Mail’’ under M012. Pieces not marked

as required are treated as single-piece

Parcel Post, subject to additional

postage as necessary.

* * * * *

M800 All Automation Mail

M810 Letter-Size Mail

1.0 BASIC STANDARDS

* * * * *

[Amend 1.2 to delete the reference to 3/

5 rates and to include information on

mail qualifying for carrier route

automation rates. Amend 1.2 and 1.3 to

move information about postage

statements and documentation from 1.2

to 1.3.]

1.2 Mailings

The requirements for mailings are as

follows:

a. General. All pieces in a mailing

must meet the standards in C810 and

must be sorted together to the finest

extent required. The definitions of a

mailing and permissible combinations

are in M011.

b. First-Class. A single automation

rate First-Class mailing may include

pieces prepared at carrier route, 5-digit,

3-digit, and basic automation rates.

c. Periodicals. A single automation

rate Periodicals mailing may include

pieces prepared at 5-digit, 3-digit, and

basic automation rates.

d. Standard Mail (A). Pieces prepared

to qualify for carrier route automation

rates must be prepared as a separate

mailing (meet a separate minimum

volume requirement) from pieces

prepared to qualify for 5-digit, 3-digit,

and basic automation rates.

1.3 Documentation

A complete, signed postage statement,

using the correct USPS form or an

approved facsimile, must accompany

each mailing and must be supported by

documentation produced by PAVEcertified (or, except for Periodicals,

MAC-certified) software or by

standardized documentation under

P012. Mailers may use a single postage

statement and a single documentation

report for all rate levels in a single

mailing. Standard Mail (A) mailers may

use a single postage statement and a

single documentation report for both an

automation carrier route mailing and a

mailing containing pieces prepared at 5-

digit, 3-digit, and basic automation rates

as applicable, submitted for entry at the

same time. Documentation of postage is

not required if the correct rate is affixed

to each piece or if each piece is of

identical weight and the pieces are

separated by rate when presented for

acceptance. Combined mailings of

Periodicals publications also must be

documented under M200.

* * * * *

3.0 PERIODICALS

3.1 Tray Preparation

[Amend 3.1a to read as follows:]

Tray size, preparation sequence, and

Line 1 labeling:

a. 5-digit/scheme: optional, but 5-digit

trays required for rate eligibility (150-

piece minimum); overflow allowed; for

Line 1, for 5-digit trays, use 5-digit ZIP

Code destination of pieces, preceded for

military mail by the prefixes under

M031; for Line 1, for optional 5-digit

scheme trays, use destination shown in

the current City State File.

* * * * *

M820 Flat-Size Mail

1.0 BASIC STANDARDS

* * * * *

[Amend 1.2 to add a reference to 5-digit

and 3-digit rates. Amend 1.2 and 1.3 to

move information about postage

statements and documentation from 1.2

to 1.3.]

1.2 Mailings

All pieces in a mailing must meet the

standards in C820 and must be sorted

together to the finest extent required.

First-Class Mail and Standard Mail (A)

mailings may include pieces prepared at

automation 3/5 and basic rates, as

applicable. Periodicals mailings may

include pieces prepared at automation

5-digit, 3-digit, and basic rates, as

applicable. The definitions of a mailing

and permissible combinations are in

M011.

1.3 Documentation

[Insert the following after the first

sentence in 1.3:]

* * * Mailers may use a single

postage statement and a single

documentation report for all rate levels

in a single mailing. * * *

* * * * *

3.0 PERIODICALS

* * * * *

3.2 Sack Preparation

[Revise 3.2b and 3.2c to read as follows:]

Sack size, preparation sequence, and

Line 1 labeling:

* * * * *

b. 3-digit: required at 24 pieces;

optional with one six-piece package
37994 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

minimum except under 1.7; for Line 1,

use L002, Column A.

c. SCF: required at 24 pieces (no

minimum for required origin/optional

entry SCF); optional with one six-piece

package minimum except under 1.7; for

Line 1, use L002, Column C.

* * * * *

P Postage and Payment Methods

P000 Basic Information

P010 General Standards

P011 Payment

1.0 PREPAYMENT AND POSTAGE

DUE

1.1 Prepayment Conditions

[Revise 1.1e to read as follows:]

The mailer is responsible for proper

payment of postage. Postage on all mail

must be fully prepaid at the time of

mailing, except as specifically provided

by standard for:

* * * * *

e. Keys and identification devices

returned to owners (see E120 and E130).

* * * * *

1.5 Shortpaid Mail-Basic Standards

[Amend the first sentence of 1.5 by

removing ‘‘and nonstandard singlepiece Standard Mail (A)’’ to read as

follows:]

Mail of any class, including mail

indicating special services (except

Express Mail, registered mail, and

nonstandard First-Class Mail), which is

received at either the office of mailing

or office of address without enough

postage is marked to show the total

deficiency of postage and fees. * * *

* * * * *

1.8 Shortpaid Nonstandard Mail

[Amend 1.8 by removing ‘‘nonstandard

Single-Piece Standard Mail’’ to read as

follows:]

Shortpaid nonstandard First-Class

Mail is returned to the sender.

* * * * *

2.0 MAILABLE MATTER IN OR ON

PRIVATE MAIL RECEPTACLES

* * * * *

2.3 Partial Distribution

[Amend 2.3 to reflect elimination of

single-piece Standard Mail (A) rates to

read as follows:]

If there is a distribution of pieces to

some, but not all, addresses on a route,

pieces are returned to the delivery unit

for use in computing the postage due.

First-Class Mail rates are applied to

matter that would require First-Class

Mail postage if mailed. For other matter,

if the piece weighs less than 16 ounces,

the applicable single-piece First-Class

Mail or Priority Mail rate based on the

weight of the piece is applied, or an

applicable Standard Mail (B) rate is

applied, whichever is lower. If the piece

weighs 16 ounces or more, the Standard

Mail (B) rate is applied.

* * * * *

P012 Documentation

* * * * *

2.0 STANDARDIZED

DOCUMENTATION ( FIRST-CLASS

MAIL, PERIODICALS, AND

STANDARD MAIL (A)

* * * * *

2.3 Rate Level Column Headings

[Amend 2.3a and 2.3b to reflect the new

separate 5-digit and 3-digit presort rate

categories for Periodicals mail as

follows:]

The actual name of the rate level (or

corresponding abbreviation) is used for

column headings required by 2.2 and

shown below:

a. Automation First-Class Mail,

Periodicals, and Standard Mail (A):

Rate Abbreviation

Carrier Route [First-Class Mail

letters/cards].

CB

5-Digit [First-Class Mail letters/cards, Periodicals letters and flats, and Standard

Mail letters].

5B

3-Digit [First-Class Mail letters/cards, Periodicals letters and flats, and Standard

Mail letters].

3B

3/5[First-Class Mail and

Standard Mail flats].

3/5B

Basic [letters/cards and flats] BB

b. Presorted First-Class Mail,

nonautomation presorted Periodicals,

and Standard Mail (A):

Rate Abbreviation

Presorted [First-Class Mail letters/cards, flats, and parcels].Presort

5-Digit [Periodicals letters,

flats, and parcels].

5D

3-Digit [Periodicals letters,

flats, and parcels].

3D

3/5 [Standard Mail letters,

flats, and parcels].

3/5

Basic [letters/cards and flats] BS

* * * * *

2.4 Sortation Level

[Amend 2.4 by deleting row ‘‘Unique 3-

Digit [Periodicals]’’ and ‘‘3DGU’’ and by

revising the SCF sortation level to read

as follows:]

The actual sortation level (or

corresponding abbreviation) is used for

the package, tray, sack, or pallet levels

required by 2.2 and shown below:

Sortation level Abbreviation

* * * * *

SCF [pallets, Periodicals flats,

Bound Printed Matter].

n/a

* * * * *

* * * * *

P013 Rate Application and

Computation

1.0 BASIC STANDARDS

* * * * *

1.4 Affixing Postage—Single-Piece

Rate Mailings

[Amend the first sentence of 1.4 by

removing ‘‘or Standard Mail (A)’’ to read

as follows:]

In a postage-affixed single-piece rate

Express Mail, First-Class Mail, or

Priority Mail mailing, or in any postageaffixed Standard Mail (B) mailing, the

mailer must affix to each piece a value

in adhesive stamps, precanceled stamps,

or meter impressions equal to at least

the postage required for the piece. * * *

* * * * *

2.0 RATE APPLICATION—EXPRESS

MAIL, FIRST-CLASS MAIL, AND

PRIORITY MAIL

* * * * *

[Insert new 2.6 to read as follows:]

2.6 Keys and Identification Devices

Keys and identification devices

weighing 13 ounces or less are charged

the First-Class Mail rates per ounce or

fraction thereof in accordance with 2.3,

plus a $0.30 fee. Keys and identification

devices weighing more than 13 ounces

but no more than 2 pounds are mailed

at the 2-pound Priority Mail rate in

accordance with 2.4, plus a $0.30 fee.

* * * * *

4.0 RATE APPLICATION—

STANDARD MAIL (A)

[Remove 4.1 and 4.2 and redesignate

current 4.3 as the text of 4.0. Amend 4.0

to revise the breakpoints as follows:]

Standard Mail (A) rates are based on

the weight of the pieces and are applied

differently to pieces weighing less than

or equal to a ‘‘breakpoint’’ (rounded to

four decimal places) and those weighing

more, as follows:

a. The appropriate minimum perpiece rate applies to Enhanced Carrier

Route rate pieces weighing 0.2066

pound (3.3062 ounces) or less; Regular

Presorted and automation rate pieces

weighing 0.2068 pound (3.3087 ounces)
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37995

or less; Nonprofit Enhanced Carrier

Route rate pieces weighing 0.2069

pound (3.3103 ounces) or less; and

Nonprofit Presorted and automation rate

pieces weighing 0.2055 pound (3.2873

ounces) or less.

b. A rate determined by adding the

appropriate fixed per-piece charge and

the corresponding variable per-pound

charge (based on the weight of the

piece) applies to pieces weighing more

than 0.2066 pound (3.3062 ounces) at

Enhanced Carrier Route rates; weighing

more than 0.2068 pound (3.3087

ounces) at Regular Presorted and

automation rates; weighing more than

0.2069 pound (3.3103 ounces) at

Nonprofit Enhanced Carrier Route rates;

and weighing more than 0.2055 pound

(3.2873 ounces) at Nonprofit Presorted

and automation rates.

* * * * *

5.0 RATE APPLICATION—

STANDARD MAIL (B)

5.1 Basis

Postage is based on the rate that

applies to the weight (postage)

increment of each address piece, and

where applicable, on the zone to which

the piece is addressed.

* * * * *

[Delete current 5.6 and renumber

current 5.7 as 5.6. Revise renumbered

5.6 to change the name of the rate from

‘‘bulk’’ to ‘‘presorted’’ to read as

follows:]

5.6 Presorted Bound Printed Matter

The presorted Bound Printed Matter

rate has a per-piece charge and a perpound charge. The minimum postage

rate for an addressed piece is one unit

of the per-piece charge plus the perpound charge for an addressed piece

weighing 1 pound.

* * * * *

8.0 COMPUTING POSTAGE—

STANDARD MAIL (A)

[Remove 8.1 and renumber current 8.2

through 8.5 as 8.1 through 8.4,

respectively; no other changes.]

* * * * *

9.0 COMPUTING POSTAGE—

STANDARD MAIL (B)

9.1 Mailing Weight

[In 9.1a revise the term ‘‘bulk Bound

Printed Matter’’ to read ‘‘presorted

Bound Printed Matter.’’]

[Revise the title of 9.2 to read as

follows:]

9.2 Total Postage—Presorted Bound

Printed Matter

[In 9.2 revise the term ‘‘bulk Bound

Printed Matter’’ to read ‘‘presorted

Bound Printed Matter.’’]

* * * * *

9.4 Computing Affixed Postage—

Individual Pieces

[In the first and second sentences of 9.4

revise the term ‘‘bulk Bound Printed

Matter’’ to read ‘‘presorted Bound

Printed Matter.’’]

9.5 Permit Imprint

[In the first sentences of 9.5a and 9.5b

revise the term ‘‘bulk Bound Printed

Matter’’ to read ‘‘presorted Bound

Printed Matter.’’]

P014 Refunds and Exchanges

* * * * *

2.0 POSTAGE AND FEES REFUNDS

* * * * *

2.3 Torn or Defaced Mail

[Amend 2.3 by removing ‘‘Single-Piece

Standard Mail’’ as follows:]

If First-Class Mail or Standard Mail

(B) is torn or defaced during USPS

handling so that the addressee or

intended delivery point cannot be

identified, the sender may receive a

postage refund. This applies only when

the failure to process and/or deliver is

the fault of the USPS. Where possible,

the damaged item is returned with the

postage refund.

* * * * *

P030 Postage Meters and Meter

Stamps

1.0 BASIC INFORMATION

* * * * *

1.5 Reply Postage

[Revise 1.5 to reflect the new 13-ounce

weight limit for First-Class Mail to read

as follows:]

Meter stamps may prepay reply

postage on Express Mail; Priority Mail

when the rate is the same for all zones;

First-Class postcards, letters, and flats

up to a maximum of 13 ounces; singlepiece rate Special Standard Mail; and

Library Mail, under the following

conditions:

* * * * *

c. Postage on Priority Mail over 13,

ounces, single-piece rate Special

Standard Mail, or Library Mail may be

paid only with meter-stamped address

labels.

* * * * *

5.0 MAILINGS

5.1 Notification of Metered Mailings

Presented in Bulk

[Amend the names of the rates in the

first sentence of 5.1 to read as follows:]

Mailers who want to present

Presorted First-Class Mail, Standard

Mail (A), Parcel Post in bulk quantities,

presorted Bound Printed Matter, Carrier

Route Bound Printed Matter, or

Presorted Special Standard Mail using

metered postage must complete Form

3615. * * *

* * * * *

5.4 Place of Mailing

[Amend 5.4a by removing ‘‘Standard

Mail (A)’’ to read as follows:]

Except as noted below, metered mail

must be deposited at a post office

acceptance unit, retail unit, or other

location designated by the postmaster of

the licensing post office (i.e., the post

office shown in the meter stamp) and

may not be given to a delivery employee

or deposited in a street collection box,

mailchute, receiving box, cooperative

mailing rack, or other mail collection

receptacle. Exceptions to this general

standard are listed below.

a. Express Mail, Priority Mail (in a

weight category for which rates do not

vary by zone), or single-piece rate FirstClass Mail, may be deposited in any

street collection box or such other place

where mail is accepted and that is

served by the licensing post office.

* * * * *

P040 Permit Imprints

* * * * *

4.0 INDICIA Format

4.1 Basic Standard

* * * * *

Exhibit 4.1a Indicia Formats for

Mailgram and Official Mail

[Under the heading ‘‘Standard Mail (A)

Official Mail,’’ delete the first example,

in the second example change ‘‘BULK

RATE’’ to ‘‘PRSRT STD,’’ and in the

third example change ‘‘BULK RATE

AUTOCR’’ to ‘‘PRESORTED

STANDARD AUTOCR,’’ add a new

example that reads ‘‘PRSRT STD,

AUTO, POSTAGE AND FEES PAID,

AGENCY NAME, PERMIT NO. G–999.’’]

[Under the heading ‘‘Standard Mail (B)

Official Mail,’’ in the third example

change ‘‘BULK RATE BOUND PRINTED

MATTER’’ to ‘‘PRSRT BOUND

PRINTED MATTER.’’]

Exhibit 4.1b Indicia Formats for FirstClass Mail and Standard Mail

[Under the heading ‘‘Standard Mail

(A),’’ in the first example change ‘‘BULK
37996 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

RATE ECRWSS’’ to ‘‘PRESORTED

STANDARD ECRWSS,’’ in the second

example change ‘‘BULK RATE

AUTOCR’’ to ‘‘PRESORTED

STANDARD AUTOCR,’’ in the third

example change ‘‘BLK RT AUTO’’ to

‘‘PRSRT STD AUTO,’’ in the seventh

and eighth examples change ‘‘BULK

RATE’’ to ‘‘PRESORTED STANDARD,’’

delete the ninth example.]

[Under the heading ‘‘Standard Mail

(B),’’ in the second example delete the

word ‘‘BLK RT,’’ in the third example

change ‘‘BULK PARCEL POST’’ to

‘‘PARCEL POST,’’ add a fifth example

that reads ‘‘PP D/S, U.S. POSTAGE

PAID, NEW YORK, NY, PERMIT NO.

1,’’ add a sixth example that reads

‘‘PRESORTED BOUND PRINTED

MATTER, U.S. POSTAGE PAID, NEW

YORK, NY, PERMIT NO. 1.’’]

* * * * *

P100 First-Class Mail

* * * * *

2.0 SINGLE-PIECE RATE

* * * * *

[Insert new 2.6 to read as follows:]

2.6 Residual Standard Mail (A)

Subject to First-Class Rates

Mailers who have pieces weighing 13

ounces or less that do not qualify for

Standard Mail (A) rates, but that are

prepared as Standard Mail (A), must pay

single-piece First-Class Mail postage for

such pieces. If mailers do not desire to

receive First-Class Mail service for such

pieces they may enter the mailpieces

‘‘as is’’ (i.e., bearing the Standard Mail

(A) markings and endorsements), under

the following conditions:

a. Additional markings and/or postage

must not be added to these pieces.

b. Mail bearing metered or

precanceled stamp postage must pay the

difference between the postage affixed

at the Standard Mail (A) rates and the

single-piece First-Class Mail rates by

means of an advance deposit account or

by affixing a meter strip for the

appropriate amount to Form 3600–P,

Postage Statement—(First-Class Mail

Postage Affixed. The number of pieces,

rate, and any surcharge information

must be entered in Part C on the reverse

side of Form 3600–P in the space

provided under the special heading

‘‘From Standard Mail (A)’’.

c. Mail bearing permit imprints must

pay the appropriate single-piece FirstClass rates by completing Form 3600–R,

Postage Statement—(First-Class Mail

Permit Imprint. The number of pieces,

rate, and any surcharge information

must be entered in Part C on the reverse

side of Form 3600–R in the space

provided under the special heading

‘‘From Standard Mail (A).’’ For permit

imprint mail there must be at least 200

pieces, except when the pieces are part

of a larger mailing job and are submitted

for acceptance along with the mail and

a Standard Mail (A) postage statement

for the other pieces in the same mailing

job.

3.0 PRIORITY MAIL RATES

* * * * *

[Insert new 3.4 to read as follows:]

3.4 Residual Standard Mail (A)

Subject to Priority Mail Rates

Mailers who have permit imprint

pieces weighing over 13 ounces, but less

than 16 ounces, that do not qualify for

Standard Mail (A) rates, but that are

prepared as Standard Mail (A), must pay

Priority Mail postage for such pieces.

Mailpieces paid with meters or permit

imprints must re-envelope or otherwise

prepare the pieces so that when mailed

they bear only the appropriate Priority

Mail markings, ancillary service

endorsements, and ACS codes, and do

not bear Standard Mail (A) markings,

endorsements, or ACS codes. Mailpieces

paid with permit imprints for which

mailers do not desire to receive Priority

Mail service may enter the mailpieces

‘‘as is’’ (i.e., bearing the Standard Mail

(A) markings and endorsements), under

the following conditions:

a. Additional markings and/or postage

must not be added to these pieces.

b. The appropriate Priority Mail rates

must be paid by completing Form 3600–

PM, Postage Statement—Priority Mail

Permit Imprint. The pieces must be

recorded on this postage statement on

the line titled ‘‘Pieces From Standard

Mail (A)’’ in the postage calculation

section. For permit imprint mail there

must be at least 200 pieces, except when

the pieces are part of a larger mailing job

and are submitted for acceptance along

with the mail and a Standard Mail (A)

postage statement for the other pieces in

the same mailing job.

* * * * *

P600 Standard Mail

1.0 BASIC INFORMATION

1.1 Payment Method

[Amend 1.1 to read as follows:]

Standard Mail postage must be paid

using one of the following methods:

a. Standard Mail (A). The mailer is

responsible for proper postage payment.

Postage for Standard Mail (A) must be

paid with meters, permit imprints, or

precanceled stamps. Postage-affixed

pieces must bear the correct postage

unless excepted by standard. A permit

imprint may be used for mailings that

contain nonidentical-weight pieces only

if authorized by the RCSC serving the

mailing office.

b. Standard Mail (B). The mailer is

responsible for proper postage payment.

Subject to the corresponding standards,

postage for single-piece rate Standard

Mail (B) may be paid by any method.

Postage for bulk rate (rate has minimum

mailing volume requirement) or presort

rate Standard Mail (B) must be paid

with meters or permit imprints. Postageaffixed pieces must bear the correct

postage unless excepted by standard. A

permit imprint may be used for mailings

that contain nonidentical-weight pieces

only under P710, P720, or P730. Permit

imprints may be used for identical

weight pieces provided that the mail

can be separated into groups that each

contain pieces subject to the same zone

and same combination of rates (e.g., all

are zone 4, Inter-BMC, with a BMC

Presort discount and a barcode

discount). Identical weight permit

imprint mail also may be mailed under

P710, P720, or P730.

* * * * *

[Delete 1.3.]

[Revise title of 2.0 and clarify the

language in 2.1 to read as follows:]

2.0 Standard Mail (A)—Presorted and

Enhanced Carrier Route

2.1 Identical-Weight Pieces

Mailings of identical-weight pieces in

a Presorted or Enhanced Carrier Route

mailing may have postage affixed to

each piece at the exact rate for which

the piece qualifies, or each piece in the

mailing may have postage affixed at the

lowest rate applicable to pieces in the

mailing or in the mailing job.

Alternatively, a nondenominated

precanceled stamp may be affixed to

every piece in the mailing or mailing

job, or each piece may bear a permit

imprint. If exact postage is not affixed,

all additional postage must be paid at

the time of mailing with an advance

deposit account or with a meter strip

affixed to the required postage

statement. If exact postage is not affixed,

documentation meeting the standards in

P012 must be submitted to substantiate

the additional postage unless the pieces

are identical weight and separated by

rate when presented for acceptance.

* * * * *

[Revise the heading of 3.0 to read as

follows:]

3.0 STANDARD MAIL (A)—

AUTOMATION RATES

* * * * *

P710 Manifest Mailing System (MMS)

* * * * *
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37997

3.0 Keyline

3.1 Letter-Size Mail

* * * * *

Exhibit P710.3.1 Letter-Size Keyline

Information

[Amend the postage indicia in the upper

right corner of the second (Standard

Mail (A))sample mailpiece by replacing

‘‘BULK RATE’’ with ‘‘PRSRT STD’’ to

read as follows:]

PRSRT STD

U.S. POSTAGE PAID

NEW YORK, NY

PERMIT NO. 1

* * * * *

P750 Plant-Verified Drop Shipment

(PVDS)

* * * * *

2.0 PROGRAM PARTICIPATION

* * * * *

2.11 Mailer Transport of PVDS

[Revise 2.11 to provide for additional

DSCF and DDU rate Parcel Post mailings

as follows:]

Using any means of transportation,

including Express Mail or Priority Mail

drop shipment, the mailer must

transport PVDS mailings from the origin

plant to the destination postal facility or

facilities. The mailer must not transport

PVDS mailings on the same vehicle with

shipments not entered as PVDS. For

Standard Mail PVDS, the mailer must

meet the scheduling standards for mail

deposit at destination entry postal

facilities. If a vehicle contains mail paid

at the Parcel Post destination entry

rates, the applicable standards for

scheduling of deposits and unloading of

vehicles apply to any other mail on the

same vehicle for the same destination

facility. Any material classified as

hazardous under C023 may not be

carried in the same vehicle as PVDS

mailings.

2.12 Separation of PVDS Mailings

[Renumber 2.12d and 2.12e as 2.12e and

2.12f, respectively. Add new 2.12d to

provide for separation of Parcel Post at

different destination entry rates in the

same shipment as follows:]

PVDS mailings must be kept separate:

* * * * *

d. When a vehicle contains a

shipment of Standard Mail (B) claiming

more than one destination entry

discount for deposit at the same postal

facility, the mail eligible for each

destination entry discount must be

physically separated.

* * * * *

5.0 POSTAGE

* * * * *

5.3 Standard Mail (B)

[Revise 5.3 to explain zone-based

postage computation as follows:]

Postage for Standard Mail (B) PVDS

must be paid with meter stamps or with

a permit imprint under the applicable

authorization at the post office serving

the mailer’s location. Postage for DBMC

mailings is computed from the BMC

parent post office.

* * * * *

P760 First-Class or Standard Mail

Mailings with Different Payment

Methods

* * * * *

2.0 POSTAGE

* * * * *

2.2 Metered Pieces Standard Mail (A)

[Revise the first sentence of 2.2 to

change the term ‘‘nonautomation’’ to

‘‘Presorted.’’ Delete the last sentence.]

Metered pieces in a combined mailing

must bear postage at a Presorted or

automation rate for which the pieces are

eligible. Additional postage due for

metered pieces in a combined mailing is

deducted from the mailer’s postage due

advance deposit account.

* * * * *

2.4 Precanceled Pieces Standard Mail

(A)

[Amend 2.4 by deleting the last

sentence.]

* * * * *

3.0 PRODUCING THE COMBINED

MAILING

* * * * *

3.3 Rejected Pieces

[In 3.3a, change the phrase ‘‘Standard

Mail (A) 3/5 presort rate’’ to ‘‘3/5

Presorted Standard Mail (A) rate as

follows:’’]

Pieces rejected for any reason by the

mailer’s automated sorting system and

pulled out of the combined mailing

stream must be identified by the mailer,

specifically accounted for in

documentation, and:

a. If postage-affixed, bear postage or

have additional postage affixed to equal

a rate no lower than the correct

Presorted First-Class rate or 3/5

Presorted Standard Mail (A) rate for

letters, as applicable.

* * * * *

[Revise entire R module to read as

follows:]

BILLING CODE 7710–12–P
37998 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 37999
38000 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38001
38002 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38003
38004 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38005
38006 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38007
38008 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38009
38010 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38011
38012 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38013
38014 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38015
38016 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38017
38018 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38019
38020 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38021
38022 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38023
38024 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38025
38026 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38027
38028 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38029

BILLING CODE 7710–12–C

S Special Services

S000 Miscellaneous Services

S010 Indemnity Claims

* * * * *

2.0 GENERAL FILING

INSTRUCTIONS

2.1 Who May File

[Insert new 2.1d to read as follows:]

A claim may be filed by:

* * * * *

d. Only the sender, for bulk Insured

service mail.

2.2 When to File

[Amend the chart to add the following:]

Mail type or service

When to file (from

mailing date)

No sooner

than

No later

than

Bulk Insured .......... 30 days ... 6 months

* * * * *

* * * * *

2.11 Payable Claim

[Amend 2.11a and add new 2.11n to

read as follows:]

Insurance for loss or damage to

insured, registered, or COD mail within

the amount covered by the fee paid or

within the indemnity limits for Express

Mail as explained in 2.12 is payable for

the following:

a. Actual value of lost articles at the

time and place of mailing (see 2.11n for

bulk insured articles).

* * * * *

n. For bulk insured articles,

indemnity is provided for the lesser of

(1) the actual value of the article at the

time of mailing, or (2) the wholesale

cost of the contents to the sender.

* * * * *

2.13 Payment

[Amend 2.13 to read as follows:]

The USPS does not make payment for

more than the actual value of the article

(or, for bulk insurance, the wholesale

cost of the contents to the sender if a

lesser amount) nor make payment for

more than the maximum amount

covered by the fee paid.

* * * * *

4.0 ADJUDICATION

4.1 Initial

[Amend 4.1 to read as follows:]

The St. Louis Accounting Service

Center (ASC) adjudicates and pays or

disallows all domestic claims except the

initial adjudication of domestic

unnumbered insured claims that are not

bulk insured service and those appealed

under 4.3. Domestic unnumbered

insured claims, except for bulk insured

service, are adjudicated and paid locally

at the post office accepting the claims.

* * * * *

[Insert new 6.0 to read as follows:]

6.0 BULK INSURED CLAIMS

Mailers authorized to mail at bulk

insured rates under S913 will receive

instructions for filing claims from their

postmaster or designee, including

specific claim numbers to be used when

filing claims. At some time in the future,

electronic filing of indemnity claims

will become mandatory. Prior to

mandatory electronic claims filing,

customers will be provided with the

format instructions for the new

electronic (soft copy) of Form 3877,

Firm Mailing Book for Accountable

Mail, and instructions for electronic

filing of indemnity claims.

* * * * *

S070 Mixed Classes

1.0 BASIC INFORMATION

[Amend 1.1 and 1.2 to read as follows:]

1.1 Priority Mail Drop Shipment

For a Priority Mail drop shipment,

enclosed First-Class Mail may be sent

certified or special handling; enclosed

Standard Mail (B) may be sent special

handling. Enclosed mail, regardless of

class, may not be sent registered,

insured, or collect on delivery (COD).

No special services may be given to the

Priority Mail segment of the drop

shipment.

1.2 Special Handling

A combination mailpiece sent as a

Standard Mail (B) parcel may be sent

using special handling; only one special

handling fee is charged for the parcel.

* * * * *

S900 Special Postal Services

S910 Security and Accountability

S911 Registered Mail

* * * * *

2.0 FEES AND LIABILITY

* * * * *

2.3 Postal Insurance

[Amend 2.3 to read as follows:]

Postal insurance is provided for

articles with a value of at least $0.01 up

to a maximum insured value of $25,000.

Insurance is included in the fee. Postal

insurance is not available for articles

with no value ($0.00).

* * * * *

S913 Insured Mail

1.0 BASIC INFORMATION

1.1 Description

[Amend 1.1 to add a reference to the

bulk insurance discount read as

follows:]

Retail insured mail provides up to

$5,000 indemnity coverage for a lost,

rifled, or damaged article, subject to the

standards for the service and payment of

the applicable fee. A bulk insurance

discount is available for insured articles

entered by authorized mailers who meet

the criteria in 3.0. No record of insured

mail is kept at the office of mailing.

Insured mail service provides the sender

with a mailing receipt. For mail insured

for more than $50, a delivery record is

kept at the post office of address.

Insured mail is dispatched and handled

in transit as ordinary mail.

1.2 Eligible Matter

[Amend 1.2 to read as follows:]

The following types of mail matter

may be insured:

a. Standard Mail (B).

b. Standard Mail matter mailed at the

First-Class Mail or Priority Mail rates

(i.e., is not matter described in E110 as

required to be mailed as First-Class

Mail). Sealed matter must be endorsed

‘‘Standard Mail Enclosed’’ in addition to

the First-Class Mail or Priority Mail

endorsement.
38030 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

c. Official government mail endorsed

‘‘Postage and Fees Paid.’’

1.3 Ineligible Matter

[Insert new 1.3f and 1.3g to read as

follows:]

The following items may not be

insured:

* * * * *

f. Matter mailed at Standard Mail (A)

rates.

g. Matter mailed at First-Class Mail

rates (including Priority Mail) that

consists of items described in E110 as

required to be mailed at the First-Class

rates.

* * * * *

[Renumber current 3.0 as 4.0 and insert

new 3.0 to read as follows:]

3.0 ADDITIONAL REQUIREMENTS—

BULK INSURANCE

3.1 Eligibility

To mail at the bulk insured service

rates, mailers must obtain an

authorization under 3.2 and must meet

the following criteria:

a. Enter mailings of insured articles

under an approved manifest mailing

system agreement.

b. Mail a minimum of 10,000 insured

articles annually. To meet the minimum

volume requirement, mailers may total

all insured articles mailed at multiple

locations.

c. Provide a hard copy of Form 3877,

Firm Mailing Book for Accountable

Mail, or facsimile and a copy of Form

3877 on a disk or other electronic

medium.

d. Effective at a future date, provide

a soft (electronic) copy of Form 3877,

Firm Mailing Book for Accountable

Mail, in a new, approved format.

3.2 Authorization

Mailers must apply for authorization

to mail at the bulk insured service rates

through their local postmaster or

designee by completing the customer

portion of the Bulk Insured Service

(BIS) verification form. The postmaster

or designee will verify on this form that

the mailer meets the requirements in

3.1. If the mailer does not meet the

requirements, the application will be

denied. If the mailer meets the

requirements in 3.1, the postmaster or

designee will certify on the Bulk

Insured Service (BIS) verification form

that the mailer qualifies and forward the

form to the manager of Claims

Processing at the St. Louis Accounting

Service Center (ASC). After reviewing

the information, St. Louis will notify the

postmaster of their concurrence of the

application and provide a range of claim

numbers to be used by the mailer for

filing claims. The postmaster or

designee will then provide the customer

with the approval of the application and

with information needed to file claims,

including the assigned claim numbers.

At a future date, electronic filing of

indemnity claims will become

mandatory. Prior to mandatory

electronic claims filing, customers will

be provided with the format instructions

for the new electronic (soft copy) of

Form 3877, Firm Mailing Book for

Accountable Mail, and instructions for

electronic filing of indemnity claims.

* * * * *

S915 Return Receipt

1.0 BASIC INFORMATION

1.1 Description

[Clarify 1.1 to read as follows:]

Return receipt service provides a

mailer with evidence of delivery (to

whom the mail was delivered and date

of delivery). A return receipt also

supplies the recipient’s actual delivery

address if it is different from the address

used by the sender. A return receipt

may be requested before or after

mailing.

* * * * *

2.0 OBTAINING SERVICE

2.1 At Time of Mailing

[Correct the first sentence by changing

‘‘Form 3811 or marking the mail’’ to

‘‘Form 3811 and marking the mail’’ as

follows:]

The mailer may request the service at

the time of mailing by using Form 3811

and marking the mail with the

appropriate endorsement in 1.3. * * *

* * * * *

S917 Return Receipt for Merchandise

1.0 BASIC INFORMATION

* * * * *

1.2 Availability

[Amend 1.2 to delete ‘‘Single-Piece

Standard Mail’’ as follows:]

The service is available only for

merchandise sent at the Priority Mail or

Standard Mail (B) (Parcel Post, Bound

Printed Matter, Special Standard Mail,

or Library Mail) rates. This service may

not be used on international mail.

1.3 Additional Services

[Amend 1.3 to delete ‘‘Single-Piece

Standard Mail’’ and add ‘‘Priority Mail’’

as follows:]

Special handling is available for

Priority Mail, Parcel Post, Bound

Printed Matter, Special Standard Mail,

or Library Mail, subject to payment of

the applicable fee.

* * * * *

[Add new S918 as follows:]

S918 [Reserved]

S920 Convenience

S921 Collect on Delivery (COD) Mail

1.0 BASIC INFORMATION

* * * * *

1.2 Eligible Matter

[Amend 1.2 by removing ‘‘Single-Piece

Standard Mail’’ to read as follows:]

COD service may be used for Express

Mail, First-Class Mail, Priority Mail, and

Standard Mail (B) (Parcel Post, Bound

Printed Matter, Special Standard Mail,

and Library Mail) if:

* * * * *

S922 Business Reply Mail (BRM)

1.0 BASIC INFORMATION

* * * * *

[Delete 1.5 and renumber current 1.6 as

1.5]

2.0 PERMITS

* * * * *

[Delete 2.2. Renumber current 2.3

through 2.8 as 2.2 through 2.7.]

3.0 POSTAGE AND FEES

3.1 Permit Fee

[Amend 3.1 to read as follows:]

An annual BRM permit fee is charged

each 12-month period.

* * * * *

[Replace current 3.4 with new 3.4 to

read as follows:]

3.4 Charges

a. Postage. The applicable First-Class

Mail or Priority Mail postage on each

returned piece is collected from the

addressee on delivery. A lower rate of

First-Class Mail postage applies to

QBRM (R100).

b. Fee Per Piece. The applicable BRM

fee must be collected for each returned

piece of BRM in addition to the

applicable single-piece First-Class Mail

or Priority Mail postage. Lower piece

fees apply to mail paid through a BRM

advance deposit account and to QBRM

pieces (R900).

c. Improperly Prepared QBRM. The

appropriate non-QBRM First-Class Mail

postage plus the non-QBRM per piece

fee is charged for:

(1) Business reply cards and letters

returned under QBRM that were

rejected by USPS barcode sorters and

found not to meet the standards for

QBRM.

(2) QBRM pieces with an incorrect

barcode (e.g., a barcode representing the

card rate on a letter-size piece).

[Delete current 3.5 and renumber

current 3.6 through 3.11 as 3.5 through
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38031

3.10, respectively. Amend renumbered

3.6 to read as follows:]

3.6 Cash or Postage Due

Payment may be paid in cash or by a

regular postage-due account. The

applicable BRM fee is collected, but no

business reply accounting fee is charged

when a regular postage-due account is

used (P011). A postage-due account

does not qualify the BRM for the lower

per-piece charge given to permit holders

with a business reply account.

3.7 Account Use

[Amend renumbered 3.7c and 3.7d to

read as follows:]

A BRM advance deposit account must

be used only for payment of postage and

fees on BRM, subject to these

conditions:

* * * * *

c. When a permit holder with a

business reply account desires a

separation of charges, payment of a

business reply accounting fee is

required for each separate billing

prepared. If a business reply accounting

fee is not paid for each separation, the

permit holder pays the appropriate nonQBRM First-Class Mail postage, plus for

each separation the per-piece charge

applicable to any mailer without a

business reply account.

d. A sufficient balance must be

maintained in the permit holder’s

advance deposit account for BRM. The

permit holder is notified if funds are

insufficient. After 3 days, if no funds are

deposited, BRM on hand is charged at

the fee for postage due or cash

transactions.

* * * * *

3.8 Single Item

[Amend renumbered 3.8 to read as

follows:]

Except for QBRM, two or more BRM

pieces may be mailed as a single piece

if the BRM pieces are identically

addressed and prepared in accordance

with C100. BRM postage-due

calculations are based on the total

weight of the piece and the appropriate

First-Class Mail or Priority Mail postage

plus the BRM per-piece charge for one

piece. If the combined pieces become

separated, BRM postage and fee charges

are calculated for each piece.

* * * * *

4.0 FORMAT

* * * * *

4.3 Print Reflectance

[Amend 4.3 to read as follows:]

All ink colors are acceptable if the

piece meets the appropriate reflectance

standards in C830 and C840.

* * * * *

4.8 Delivery Address

[Amend 4.8 to read as follows:]

Unless printed on an address label or

on an insert for a window envelope

under 6.0, the complete address

(including the permit holder’s name,

street address and/or post office box

number, city, state, and ZIP Code) must

be printed directly on the piece, subject

to these conditions:

a. For pieces distributed under

QBRM, the address must include a

unique ZIP+4 code that is preassigned

for the BRM piece and that identifies the

type of BRM, the applicable rate, and

the individual permit holder (see E150).

b. Preprinted labels with only

delivery address information (including

a ZIP+4 barcode under 5.0) are

permitted for addressing BRM, but the

permit holder’s name must still be

printed directly on the BRM. Permit

holders are liable for the postage and

fees on BRM returned with improper

addressing.

c. The bottom line of the address must

not be lower than 5/8 inch or higher

than 2–1/4 inches from the bottom edge

of the piece. A clear margin void of any

extraneous matter (except for the

horizontal bars specified in 4.9) of at

least 1 inch is required between the left

and right edges of the piece and the

address.

* * * * *

f. A company logo is permitted on

prebarcoded BRM if placed no lower

than 5/8 inch from the bottom edge of

the piece and is permitted on

nonbarcoded BRM if placed no lower

than the top of the street address or the

post office box line of the address. The

logo must not interfere with any

required business reply endorsements.

* * * * *

5.0 PREBARCODED BRM

[Delete current 5.1 through 5.7, and

insert new 5.1 through 5.3 to read as

follows:]

5.1 General Format Standards

Prebarcoding of BRM is optional

except for letter-size BRM enclosed in

automation rate mailings and for QBRM.

Prebarcoded BRM must meet all general

format standards in 4.0, the applicable

barcoding standards in C840, the

mailpiece design requirements in C810

(except the envelope basis weight

requirements in 7.1), and these

standards:

a. An envelope or any mailpiece

formed by an outer sheet or sheets

sealed on all four edges must be

prepared from paper with a minimum

basis weight of 20 pounds (measured

weight for 500 17 by 22-inch sheets).

b. FIM C must be used (see C100).

c. The ZIP+4 codes and barcodes

assigned to the BRM permit holder by

the USPS must be used. Delivery point

barcodes are not permitted on BRM.

d. Except as provided in e, the ZIP+4

barcode must be placed on the address

side of the piece and positioned in

either of these two locations:

(1) As part of the delivery address

block under C840 if printed on an insert

placed in a window envelope or on an

address label affixed directly to the

piece.

(2) Within the barcode clear zone in

the lower right corner of the piece if

printed directly on the piece or if

printed on an insert or a label affixed to

an insert and placed in an envelope

with a lower right barcode window

under C840.

e. Until January 10, 2001, mailers may

continue to use existing stocks of

prebarcoded BRM envelopes and cards

with barcodes in the lower right corner

that:

(1) Have a barcode clear zone with a

left boundary that is 41⁄2 inches from the

right edge of the piece (not 43⁄4 inches

as required in C840).

(2) Have a lower right barcode for

which the leftmost bar is located

between 31⁄4 and 4 inches from the right

edge of the piece (not between 31⁄2 and

41⁄4 inches as required under C840).

(3) Have a lower right barcode

window, that has a left boundary

measuring 41⁄2 inches from the right

edge of the piece (not 43⁄4 inches as

required under C840).

f. Mailers have until January 10, 2001,

to comply with C810.2.1c(2) that

requires pieces measuring more than

41⁄4 inches high or 6 inches long, or both

to measure at least 0.009 inch thick.

Until January 10, 2001, such pieces

need only meet the minimum thickness

of 0.007 inch.

5.2 Samples

Mailers are encouraged to submit

preproduction samples of BRM to the

USPS for approval.

5.3 Error Notification

If the USPS discovers a BRM format

error, the responsible permit holder or

authorized permit user receives written

notification of the error and applicable

specification. The permit holder must

correct the error and make sure that all

future BRM pieces distributed by any

means meet appropriate specifications.

The repeated distribution of BRM with

a format error, as determined by the
38032 Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations

USPS, is grounds for revoking a

business reply permit. To obtain a new

permit after a BRM permit is revoked for

not following BRM format

specifications, a former permit holder

must complete a new application on

Form 3615, pay the required BRM

permit fee, pay a new business reply

accounting fee if applicable, and submit

two samples of each BRM format to the

appropriate post office for approval for

the next 2-year period.

[Replace 6.0 with the following:]

6.0 MAILPIECE CHARACTERISTICS

6.1 Paper Weight

Paper envelopes used for BRM must

have a minimum basis weight of 20

pounds (500 17- by 22-inch sheets).

Other pieces must meet the basis weight

requirements in C810.

6.2 Nonpaper Envelopes

USPS Engineering must approve

nonpaper envelopes for mailability.

6.3 Reflectance

BRM pieces must meet the reflectance

requirements in C830. In addition,

envelope material must not have a red

fluorescence exceeding 4.0 phosphor

meter units.

6.4 Sealing and Edges

Any BRM piece is nonmailable if

sealed with wax, clasps, string, staples,

or buttons; if all edges are not straight;

or if the piece is not rectangular.

6.5 Window Envelope

The following standards apply to

BRM prepared in a window or openpanel envelope:

a. The pieces must meet the standards

in C830 for envelopes with an address

windows and inserts.

b. The endorsement ‘‘NO POSTAGE

NECESSARY IF MAILED IN THE

UNITED STATES,’’ horizontal bars,

FIM, and the legend ‘‘BUSINESS REPLY

MAIL’’ must be printed directly on the

address side of the envelope. Other

required elements, including ‘‘FIRSTCLASS MAIL PERMIT NO.,’’ city, state,

‘‘POSTAGE WILL BE PAID BY

ADDRESSEE,’’ and the permit holder’s

name and complete delivery address,

may appear either on the enclosure in

the window or be printed directly on

the envelope.

c. The address showing through the

window must be that of the permit

holder or an authorized agent/dealer.

6.6 BRM Self-Mailer

Self-mailers must be at least 0.007

inch thick, not more than 0.25 inch

thick, and meet the requirements for

sealing and folding self-mailers in

C810.4.0 and C810.7.2. Self-mailers

must contain instructions to the user for

sealing and folding, so that on return the

self-mailer will meet the applicable

sealing and folding requirements in

C810. Barcoded self-mailers, including

QBRM pieces also must meet the

requirements in 5.0.

6.7 BRM Card

A BRM card must be rectangular, not

less than 31⁄2 by 5 inches or more than

41⁄4 by 6 inches, and of uniform

thickness not less than 0.007 inch or

more than 0.016 inch to qualify for the

card postage rate. Any card larger than

those dimensions is mailable but is

charged at the First-Class Mail rate for

matter other than cards. Additional

standards in 5.0 and C810 apply to

prebarcoded BRM, including QBRM.

6.8 BRM Label

The following standards apply to

BRM labels:

a. For other than letter-size pieces, the

minimum size of a label with the legend

‘‘Business Reply Label’’ is 2 inches high

and 3 inches long. It is not necessary to

print FIMs or barcodes on these labels,

but all other BRM format standards

must be met.

b. For letter-size envelopes, the

minimum size of a label with the legend

‘‘Business Reply Label’’ is 25⁄8 inches

high and 41⁄4 inches long. A FIM must

be printed on the label. The label must

be coated with a permanent adhesive

strong enough to firmly attach the label

to an envelope. The labels must meet

the standards in 4.8 and 4.9 except that

the series of horizontal bars on labels

must be at least 3⁄4-inch high.

c. For letter-size envelopes, the permit

holder must supply the user with

instructions describing how the label

should be applied to an envelope and

what precautions must be observed

when applying the label (see Exhibit

6.8). A pictorial diagram showing

proper placement of the label must be

included with the instructions. At a

minimum, the instructions must include

the following directions:

(1) Place the label squarely on the

upper right corner of the envelope.

(2) Do not write on the envelope.

(3) Do not use a window envelope, an

envelope that is less than 1 inch taller

than the label, or an envelope with any

printing other than the return address.

(4) Do not use the label on an

envelope more than 41⁄2 inches high.

(5) Do not use tape to affix the label.

d. The address must be printed in the

address block, and the envelope with

label affixed must meet applicable OCR

readability standards in C830.

e. Business reply labels may not be

distributed under QBRM.

[Renumber former Exhibit 6.10 as

Exhibit 6.8.]

[Delete the entire contents of 7.0.]

S923 Merchandise Return Service

1.0 BASIC INFORMATION:

1.1 Description

[Delete the words ‘‘Single-Piece

Standard Mail’’ in 1.1.]

* * * * *

1.3 Payment Guarantee

[Amend 1.3 for clarification and to

eliminate return of articles at the singlepiece Standard Mail (A) rate to read as

follows:]

a. The permit holder guarantees

payment of the proper postage and fees

on all returned merchandise return

service articles distributed under the

permit holder’s permit number. Charges

are collected for each article as postage

due at the time of delivery or from a

centralized advance deposit account

using Form 3582–C, Postage Due

Invoice.

b. Articles are charged the required

fees and the proper single-piece rate as

follows:

(1) The Priority Mail, First-Class Mail,

Bound Printed Matter, Special Standard,

or Library Mail rate as marked on the

label.

(2) If no rate marking appears on the

label, pieces weighing less than 16

ounces are charged the applicable FirstClass Mail or Priority Mail rates based

on weight, and pieces weighing 16

ounces or more are charged the Parcel

Post rate.

(3) See 1.12 for postage on articles

received without a return address or a

postmark.

* * * * *

1.11 Mailer Markings and

Endorsements

[Revise 1.11 to read as follows:]

If the permit holder desires matter

weighing 16 ounces or more to be

returned at a rate other than Parcel Post,

the permit holder must preprint the

appropriate rate marking on the label. If

the permit hold desires matter weighing

16 ounces or less to be returned at the

Special Standard or Library Mail rates,

or matter weighing 13 ounces or less to

be mailed at the Priority Mail rates, the

mailer must preprint the appropriate

rate marking on the label. Otherwise,

matter weighing 13 ounces or less will

be returned at the First-Class Mail rates

and matter weighing over 13 ounces and

less than 16 ounces will be returned at

the Priority Mail rates. It is

recommended but not required that
Federal Register / Vol. 63, No. 134 /Tuesday, July 14, 1998 /Rules and Regulations 38033

matter to be returned at the First-Class

Mail, Priority Mail, or Parcel Post rates

bear the applicable preprinted marking

‘‘First-Class’’ or ‘‘First-Class Mail,’’

‘‘Priority Mail,’’ or ‘‘Parcel Post’’ (or

‘‘PP’’).

1.12 No Return Address or Postmark

Articles received without a return

address or postmark are charged the

required fees and the proper singlepiece rate as follows:

a. The Priority Mail, First-Class Mail,

Bound Printed Matter, Special Standard,

or Library Mail rate as marked on the

label.

b. If no rate marking appears on the

label, pieces weighing 13 ounces or less

are charged the First-Class Mail rates,

pieces weighing over 13 ounces and less

than 16 ounces are charged the Priority

Mail rates, and pieces weighing 16

ounces or more are charged the Parcel

Post rates.

c. Zoned rates are calculated at zone

4.

* * * * *

3.0 POSTAGE AND FEES

* * * * *

3.2 Transaction Fee

[Change ‘‘Standard Mail’’ to

‘‘Standard Mail (B)’’ as follows:]

The applicable transaction fee is

assessed for each item returned, in

addition to single-piece Priority Mail,

First-Class Mail, or Standard Mail (B)

rate postage and as applicable, the fees

for pickup or special services.

* * * * *

4.0 ADDITIONAL FEATURES

4.1 Insured Mail

[Amend 4.1 to read as follows:]

The permit holder may obtain insured

mail service with direct merchandise

return service but not with Priority Mail

reshipment. The customer using a

merchandise return label to return an

article that does not have the

appropriate postage due computation

markings in 5.0 or the endorsement

specified in 4.2 may not obtain insured

mail service. Only Standard Mail matter

(i.e., matter not required to be mailed at

First-Class Mail rates under E110)

returned at the Standard Mail (B) rates

or First-Class Mail or Priority Mail rates

may be insured. If the matter is to be

returned as First-Class Mail or Priority

Mail, the endorsement ‘‘Standard Mail

Enclosed’’ must appear below the class

of mail endorsement on the

merchandise return label.

* * * * *

4.7 Special Handling

[Revise the last sentence to read as

follows:]

* * * Special handling service is

available only for articles returned at

First-Class Mail, Priority Mail, or

Standard Mail (B) rates.

* * * * *

4.10 Combining Special Services

[Amend 4.10 to read as follows:]

Standard Mail articles (i.e., matter not

required to be mailed at First-Class Mail

rates under E110) may be both insured

and receive special handing if the

permit holder meets the applicable

standards.

Registered merchandise return pieces

cannot receive any other special service.

* * * * *

5.0 FORMAT

* * * * *

5.6 Format Elements

* * * * *

[Revise 5.6c to read as follows:]

Format standards required for the

merchandise return label are shown in

Exhibit 5.6a, Exhibit 5.6b, and Exhibit

5.6c and described as follows:

* * * * *

c. Rate Marking. If the matter to be

returned bears a rate marking as

required or recommended under 1.11,

the rate marking must be placed in the

space to the right and above the

‘‘Merchandise Return Label’’ rectangle.

The marking must be at least 1⁄4-inch

high and printed or rubber-stamped.

Only the permit holder may apply this

marking.

* * * * *

[Revise 5.6e(3) to read as follows:]

e. Registry Service. * * *

* * * * *

(3) The appropriate insurance

endorsement, below the ‘‘TOTAL

POSTAGE AND FEES DUE’’ entry: if

matter returned has value ($0.01 or

greater), ‘‘REGISTERED MAIL SERVICE

WITH POSTAL INSURANCE DESIRED

BY PERMIT HOLDER’’; if matter

returned has no value ($0.00),

‘‘REGISTERED MAIL SERVICE

WITHOUT POSTAL INSURANCE

DESIRED BY PERMIT HOLDER.’’

* * * * *

S924 Bulk Parcel Return Service

* * * * *

2.0 PERMITS

2.1 Application Process and

Participation

[Revise 2.1a and 2.1b to read as follows:]

To participate in BPRS, the mailer

must make a written request to the

postmaster at each post office where

parcels are to be returned. The request

must:

a. At a given delivery point,

demonstrate receipt of 10,000 returned

machinable parcels (originally mailed at

Standard Mail (A) rates) during the

previous 12 months, or

b. At a given delivery point,

demonstrate a high likelihood of

receiving a minimum of 10,000 returned

machinable parcels (originally mailed at

Standard Mail (A) rates) in the coming

12 months. * * *

* * * * *

2.2 Permit Renewal

[In the last two sentences change

‘‘single-piece Standard Mail (A) rate’’ to

‘‘single-piece First-Class Mail or Priority

Mail rate as appropriate for the weight

of the piece.’’]

* * * * *

S930 Handling

1.0 SPECIAL HANDLING

1.1 Description

[In 1.1 change ‘‘E620’’ to ‘‘E630.’’]

[Amend 1.2 through 1.4 to read as

follows:]

1.2 Availability

Special handling service is available

only for First-Class Mail, Priority Mail,

and Standard Mail (B) (Parcel Post,

Bound Printed Matter, Special Standard

Mail, and Library Mail).

* * * * *

1.4 Bees and Poultry

Unless sent at the First-Class Mail or

Priority Mail rates, special handling is

required for parcels containing

honeybees or baby poultry. Under

C022.37, only queen honeybees may be

shipped by aircraft. Check with your

local post office for mailability prior to

mailing honeybees other than queen

honeybees at First-Class Mail or Priority

Mail rates.

* * * * *

An appropriate amendment to 39 CFR

111.3 to reflect these changes will be

published if the proposal is adopted.

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 98–18271 Filed 7–13–98; 8:45 am]

BILLING CODE 7710–12–P